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 May 31, 2021 $5,100 Cash Balance Cash May 1, 2021 + Receipts $5,280 $12,040 Cash Receipts Date Desc. 5/3 Sales 5/10 Sales 5/17 Sales 5/24 Sales 5/31 Sales Amount $ 1,460 1,890 2,520 2,990 3,180 Date 5/7 5/12 5/15 5/22 5/30 5/31 Cash Disbursements $12,220 Cash Disbursements Check Desc. 471 Legal fees 472 Property tax 473 Salaries 474 Advertising 475 Supplies 476 Salaries Amount $ 1,300 1,670 3,600 1,500 550 3,600 $12,220 $12,040 Member FDIC 7772854360 May 31, 2021 NO. P.O. Box 162647 Midwest Bank Bowlegs, OK 74830 Looking Out For You (405) 369-CASH Account Holder: Diaz Entertainment Account Number: 124 Saddle Blvd, Bowlegs, OK 74830 Statement Date: Account Summary Beginning Balance Deposits and Credits Withdrawals and Debits May 1, 2021 Total NO. Total $6,260 $ 10,050 9 $10,100 Account Details Deposits and Credits Witlydrawals and Debits Date Amount Desc. Date No. Amount Desc. 5/4 $ 1,460 DEP 5/1 469 $ 550 CHK 5/11 1,890 DEP 5/2 470 430 сHK 5/18 2,520 DEP 5/9 471 1,300 CHK 5/20 1,100 NOTE 5/11 400 NSF 5/20 INT 5/12 472 1,670 CHK 5/25 2,990 5/18 473 3,600 CHK Ending Balance May 31, 2021 $6,210 Daily Balance Date Amount 5/1 $5,710 5/2 5,280 5/4 6, 740 5/9 5,440 5/11 6,930 5/12 5,260 60 DEP Prev 1 2 of 2 Next >

Answer 1

Solution 1:

Diaz Entertainment
Bank Reconciliation - May 31, 2021
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$6,210.00	Ending Balance as per cash books	$5,100.00
Additions:		Additions:
Outstanding Deposits	$3,180.00	Interest earned	$90.00
Bank Error	$600.00	Note collection	$1,100.00
Deductions:		Deductions:
Outstanding Checks	-$4,150.00	NSF Cheque	-$400.00
		Service charge	-$50.00
Up to date cash balance as per bank	$5,840.00	Up to date cash balance as per books	$5,840.00