Question

Required Information [The following information applies to the questions displayed below.] Part 1 of 2 The cash records and bank statement for the month of May for Diaz Entertainment are shown below. points DIAZ ENTERTAINMENT Cash Account Records May 1, 2021, to May 31, 2021 Cash Balance Cash Balance - May 31, 2021 $5,120 eBook May 1, 2821 + Cash Receipts $5,292 $11,990 Cash Receipts Date Desc. 5/3 Sales 5/19 Sales 5/17 Sales 5/24 Sales 5/31 Sales Amount $1.458 1.888 2,510 2,989 3,170 print Cash Disbursements $12, 160 Cash Disbursements Check Desc. 471 Legal fees Property tax Salaries 474 Advertising 475 Supplies 476 Salaries Date 5/7 5/12 5/15 5/22 5/30 5/31 472 473 Amount $ 1.298 1,668 3,590 1,498 540 3.590 $12.160 References $11,999 Member FDIC 7772854360 May 31, 2021 Ending Balance May 31, 2021 $6.139 P.O. Box 162647 Midwest Bank Bowlegs, OK 74832 Looking Out For You (485) 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, 2821 NO Total NO. Total 56.250 $9.99 9 $10.019 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc 5/4 $ 1,458 DÉP 5/1 $ 540 CHK 5/11 BEP DEP 429 429 CHK 5/18 2.510 DEP 471 1.299 CHK 5/20 1.ee NOTE 5/11 NSE 5/20 59 INT 5/12 472 1.660 CHK 5/25 2,980 DEP 5/18 473 3.59e CHK 5/31 INT 5/2e 5725 1,490 5/31 $ 9,988 $10,019 469 5/1 5/2 5/2 5/9 390 Daily Balance Date Amount $5,710 5,298 5/4 6,748 5/9 5,450 5/11 6.949 5/12 5.282 5/18 4.289 5/20 4.669 5/25 6,159 5/31 $ 6,139 29 59e EFT Desc. DEP Customer deposit NOTE Note collected EFT Electronic funds transfer INT Interest earned CHK Customer check SF Service fees NSF Nonsufficient funds Additional information: a. 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). b. 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. Required: 1. Prepare a bank reconciliation for Diaz's checking account on May 31, 2021. (Amounts to be deducted should be Indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.)

As you can see this is a 2 part question, not two separate questions.

Answer 1

1
Bank's cash balance		Company's cash balance
Per Bank statement	6139	Per general ledger	5120
Deposits outstanding	3170	Interest earned	88
Checks outstanding	-4130	Note collected	1000
Bank error	590	NSF check	-390
		Service fees	-49
Bank balance per reconciliation	5769	Company balance per reconciliation	5769

2
	General Journal	Debit	Credit
1	Cash	1088
	Notes Receivable		1000
	Interest revenue		88	=59+29
	General Journal	Debit	Credit
2	Accounts Receivable	390
	Service fee expense	49
	Cash		439