Question

The following information applies to the questions displayed below.] The cash records and bank statement for the month of May for Diaz Entertainment are shown below. DIAZ ENTERTAINMENT Cash Account Records May 1, 2021, to May 31, 2021 Cash Balance Cash Balance May 1, 2021 + Cash Receipts − Cash Disbursements = May 31, 2021 $5,280 $12,040 $12,220 $5,100 Cash Receipts Cash Disbursements Date Desc. Amount Date Check# Desc. Amount 5/3 Sales $ 1,460 5/7 471 Legal fees $ 1,300 5/10 Sales 1,890 5/12 472 Property tax 1,670 5/17 Sales 2,520 5/15 473 Salaries 3,600 5/24 Sales 2,990 5/22 474 Advertising 1,500 5/31 Sales 3,180 5/30 475 Supplies 550 5/31 476 Salaries 3,600 $ 12,040 $ 12,220 P.O. Box 162647 Midwest Bank Member FDIC Bowlegs, OK 74830 Looking Out For You (405) 369-CASH Account Holder: Diaz Entertainment Account Number: 7772854360 124 Saddle Blvd, Bowlegs, OK 74830 Statement Date: May 31, 2021 Account Summary Beginning Balance Deposits and Credits Withdrawals and

Debits Ending Balance May 1, 2021 NO. Total NO. Total May 31, 2021 $6,260 7 $10,050 9 $10,100 $6,210 Account Details Deposits and Credits Withdrawals and Debits Daily Balance Date Amount Desc. Date No. Amount Desc. Date Amount 5/4 $ 1,460 DEP 5/1 469 $ 550 CHK 5/1 $ 5,710 5/11 1,890 DEP 5/2 470 430 CHK 5/2 5,280 5/18 2,520 DEP 5/9 471 1,300 CHK 5/4 6,740 5/20 1,100 NOTE 5/11 400 NSF 5/9 5,440 5/20 60 INT 5/12 472 1,670 CHK 5/11 6,930 5/25 2,990 DEP 5/18 473 3,600 CHK 5/12 5,260 5/31 30 INT 5/20 600 EFT 5/18 4,180 5/25 474 1,500 CHK 5/20 4,740 5/31 50 SF 5/25 6,230 $ 10,050 $ 10,100 5/31 $ 6,210 Desc. DEP Customer deposit INT Interest earned SF Service fees NOTE Note collected CHK Customer check NSF Nonsufficient funds EFT Electronic funds transfer Additional information: The difference in the beginning balances in the company’s records and the bank statement relates to checks #469 and #470, which are outstanding as of April 30, 2021 (prior month). The bank made the EFT on May 20 in error. The bank accidentally charged Diaz for payment that should have been made on another account. 2. Record the necessary cash adjustments. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Total entries to the same account together when entering in the journal entry carousel.)

Answer 1

	DIAZ ENTERTAINMENT
	Bank Reconciliation
	MAY 31 , 2021
	Bank's Cash Balance	Company's Cash Balance
	Per bank statement	6,210	per general ledger	5,100
	Deposits Outstanding	3,180	Interest earned	90
	Bank Error	600	Note Collected	1,100
	Checks Outstanding	(4,150)	NSF Check	(400)
			Service Fees	(50)
	Adjusted Bank Balance	5,840	Adjusted Book Balance	5,840
	Adjustment Entries:
Transactions	Accounts Name and Explanation	Debit	Credit
1)	Cash	1,190
	Interest Revenue		90
	Note Recivable		1,100
	(To record adjustments which increase cash)
2)	Accounts Receivable	400
	Bank Service fees	50
	Cash		450
	(To record adjustments which decrease cash)