The cash records and bank statement for the month of May for Diaz Entertainment are...
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Accounting
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 companys 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.
1.Prepare a bank reconciliation for Diaz's checking account on May 31, 2021.
2. Record the necessary cash adjustments.
Answer & Explanation
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