Question

DIAE 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 Date 5/7 Cash Disbursements $12,220 Cash Disbursements Check Desc. 471 Legal fees 472 Property tax 473 Salaries 474 Advertising 475 Supplies 476 Salaries Amount $ 1,460 1,890 2,520 2,990 3,180 5/12 5/15 5/22 5/30 5/31 Amount $ 1,300 1,670 3,600 1,500 550 3,600 $12,220 $12,040 Member FDIC 7772854360 May 31, 2021 Ending Balance May 31, 2021 $ 6,210 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 NO. Total NO. Total $6,260 7 $10,050 9 $10,100 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. No. Amount Desc. 5/4 $ 1,460 DEP 5/1 469 $ 550 CHK 5/11 1,890 DEP 5/2 470 430 CHK 5/18 2,520 5/9 471 1,300 CHK 5/20 1,100 NOTE 5/11 400 NSF 5/20 60 INT 5/12 472 1,670 5/25 2,990 DEP 5/18 473 3,600 CHK 5/31 30 INT 600 EFT 5/25 474 1,500 CHK 5/31 SF $ 10,050 $10,100 Date DEP CHK 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 5/18 4,180 5/20 4,740 6,230 5/31 $6,210 5/20 50 5/25

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

Solution 2:

Journal Entries - Diaz Entertainment
Date	Particulars	Debit	Credit
31-May	Cash Dr	$1,190.00
	To Note receivables		$1,100.00
	To Interest revenue		$90.00
	(To record note and interest collection by bank)
31-May	Accounts receivables Dr	$400.00
	Service fees expense Dr	$50.00
	To Cash		$450.00
	(To record NSF check and service charges)