Question

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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

May 1, 2021

+

Cash Receipts

−

Cash Disbursements

=

May 31, 2021

$5,300

$11,940

$12,100

$5,140

Cash Receipts

Cash Disbursements

Date

Desc.

Amount

Date

Check#

Desc.

Amount

5/3

Sales

$

1,440

5/7

471

Legal fees

$

1,280

5/10

Sales

1,870

5/12

472

Property tax

1,650

5/17

Sales

2,500

5/15

473

Salaries

3,580

5/24

Sales

2,970

5/22

474

Advertising

1,480

5/31

Sales

3,160

5/30

475

Supplies

530

5/31

476

Salaries

3,580

$

11,940

$

12,100

 

P.O. Box 162647

Midwest Bank

Member FDIC

Bowlegs, OK 74830

Looking Out For You

(405) 369-CASH

Account Holder:

Diaz Entertainment

Account Number:

7772854360

124 Saddle Blvd,

Bowlegs, OK 74830

Statement Date:

May 31, 2021

Account Summary

Beginning Balance

Deposits and Credits

Withdrawals and Debits

Ending Balance

May 1, 2021

NO.

Total

NO.

Total

May 31, 2021

$6,240

7

$10,066

9

$9,938

$6,368

Account Details

Deposits and Credits

Withdrawals and Debits

Daily Balance

Date

Amount

Desc.

Date

No.

Amount

Desc.

Date

Amount

5/4

$

1,440

DEP

5/1

469

$

530

CHK

5/1

$

5,710

5/11

1,870

DEP

5/2

470

410

CHK

5/2

5,300

5/18

2,500

DEP

5/9

471

1,280

CHK

5/4

6,740

5/20

1,200

NOTE

5/11

380

NSF

5/9

5,460

5/20

58

INT

5/12

472

1,650

CHK

5/11

6,950

5/25

2,970

DEP

5/18

473

3,580

CHK

5/12

5,300

5/31

28

INT

5/20

580

EFT

5/18

4,220

5/25

474

1,480

CHK

5/20

4,898

5/31

48

SF

5/25

6,388

$

10,066

$

9,938

5/31

$

6,368

 

Desc.		DEP Customer deposit		INT Interest earned		SF Service fees
		NOTE Note collected		CHK Customer check		NSF Nonsufficient funds
		EFT Electronic funds transfer

 

Additional information:

1. 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).

2. 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.)