Question

| 11 Required information Problem 4-3A Prepare the bank reconciliation and record cash adjustments (L04-5) (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. DIAZ ENTERTAINMENT Cash Account Records May 1, 2021, to May 31, 2021 points Cash Balance eBook - May 31, 2021 $5,200 Print Cash Balance Cash May 1, 2021 + Receipts $5,330 $11,790 Cash Receipts Date Desc. 5/3 Sales 5/10 Sales 5/17 Sales 5/24 Sales 5/31 Sales References Amount $ 1,410 1,840 2,470 2,940 3,130 Date 5/7 5/12 5/15 5/22 5/30 5/31 Cash Disbursements $11,920 Cash Disbursements Check# Desc. 471 Legal fees 472 Property tax 473 Salaries 474 Advertising Supplies 476 Salaries Amount $ 1,250 1,620 3,550 1,450 500 3,550 $11,920 475 $11,790 Member FDIC 7772854360 May 31, 2021 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 withdrawals and Beginning Balance Deposits and Credits Debits May 1, 2021 NO. Total NO. Total $6,210 $9,940 9 $9,695 Account Details Deposits and Credits Withdrawals and Debits Ending Balance May 31, 2021 $ 6,455 Daily Balance

Answer 1

Bank Reconciliation
May 31,2021
Bank's cash balance		Company's cash balance
Per Bank statement	6455	Per general ledger	5200
Deposits outstanding	3130	NSF check	-350
Checks outstanding	-4050	Interest earned	80
Bank error	550	Note collected	1200
		Service fees	-45
Bank balance per reconciliation	6085	Company balance per reconciliation	6085

1
General Journal	Debit	Credit
Cash	1280
Notes Receivable		1200
Interest revenue		80	=55+25
2
General Journal	Debit	Credit
Accounts Receivable	350
Service fee expense	45
Cash		395