Question

Required information (The following information applies to the questions displayed below.] 2 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 Cash Receipts $11,590 Cash Receipts Cash May 1, 2021 $5,370 + Disbursements $11,680 May 31, 2021 $5,280 Cash Dinbursements Desc Legal fees Property tax Salaries Date Desc. Check 471 Amount Date Amount 5/3 Sales Sales $1,370 1,800 2,430 2,900 3,090 5/7 5/12 $1,210 1,580 3,510 1,410 460 5/10 472 5/17 Sales 5/15 5/22 5/30 473 5/24 Sales Advertising Supplies Salaries 474 5/31 Sales 475 3,510 5/31 476 ces $11,590 $11,680 P.O. Box 162647 Bowlegs, OK 74830 (405) 369-CASH Midweat Bank Looking Out For You Member FDIC Account Number Diaz Entertainment 7772854360 Account Holder: 124 Saddle Blvd, Bowlegs, OK 74830 May 31, 2021 Statement Date: Account Summary Withdrawals and Deposits and Credits NO. Ending Balance May 31, 2021 $6,471 Debits Beginning Balance May 1, 2021 $6,170 Total NO. Total 7 $9,672 $9,371 Account Details Daily Balance Deposits and Credits Withdrawals and Debits Amount Amount Desc. Date Date Amount Desc. Date No. 5/1 $5,710 5/1 CHK 5/4 1,370 DEP 469 460 Next <Prev 10 of 10

Answer 1

Solution:

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	$6,471.00	Ending Balance as per cash books	$5,280.00
Additions:		Additions:
Outstanding Deposits	$3,090.00	Interest earned	$72.00
Bank Error	$510.00	Note collection	$1,100.00
Deductions:		Deductions:
Outstanding Checks	-$3,970.00	NSF Cheque	-$310.00
		Service charge	-$41.00
Up to date cash balance as per bank	$6,101.00	Up to date cash balance as per books	$6,101.00

Journal Entries - Diaz Entertainment
Date	Particulars	Debit	Credit
31-May	Cash Dr	$1,172.00
	To Note receivables		$1,100.00
	To Interest revenue		$72.00
	(To record note and interest collection by bank)
31-May	Accounts receivables Dr	$310.00
	Service fees expense Dr	$41.00
	To Cash		$351.00
	(To record NSF check and service charges)