Question

part 1 options: Bank error, checks outstanding, deposits outstanding, interest earned, notes collected, NSF check, service fees

Saved SNED HOMEWORK Required information Problem 4-3A Prepare the bank reconciliation and record cash adjustments (L04-5) The following information applies to the questions displayed below) 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 31, 2021 $5,200 May 1, 2021 Cash Receipts $5,330 $11.790 Cash Receipts Date Desc Amount 5/3 Sales $ 1,410 5/10 Sales 1,840 5/17 Sales 2.470 5/24 Sales 2,940 5/31 Sales 3,130 Cash Disbursements $11,92e Cash Disbursements Check Desc. 471 Legal fees Property tax 473 Salaries 474 Advertising 475 Supplies Salaries Date 5/7 5/12 5/15 5/22 5/30 5/31 472 Amount $ 1,250 1,620 3,550 1.450 500 3,550 $11.920 476 $11,790 Member FDIC 7772854360 May 31, 2021 Endine Balance May 31, 2021 $6,455 P.O. Box 162647 Midwest Bank Bowles, 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 56.210 7 $9.940 $9,695 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc Date No. Amount Desc 5/4 $ 1,410 DEP 5/1 469 $ 500 CHE 5/11 1,840 DEP 5/2 420 380 CHK 5/18 2.470 5/9 471 1.250 CHR 5/20 1,200 NOTE 5/11 350 NSE 5/20 55 INT 5/12 472 1,620 CHE 5/25 2,940 DEP 5/18 473 3,550 CHK 5/31 25 INT 5/20 550 EFT 5/25 474 1,450 CHIK 5/31 45 SF $ 9,940 $9.695 DEP Daily Balance Date Amount 5/1 $5,710 5/2 5,330 5/4 6,740 5/9 5.490 5/11 6,980 5/12 5,360 5/18 4,280 5/20 4,985 5/25 6,475 5/31 $6,455 Desc DEP Customer deposit NOTE Note collected EFT Electronic funds transfer INT Interest earned SF Service fees CHK Customer check NSF Monsufficient funds Additional information: a. The difference in the beginning balances in the company's records and the bank statement relates to checks #469 and 2470, 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 accou

Answer 1

A B с D 1 DIAZ ENTERTAINMENT 2 Bank Reconciliation 3 May 31, 2021 4 Bank's Cash Balance Company's Cash Balance 5 Per bank statement $ 6,455 Per general ledger $5,200 6 Add: Deposits in transit $ 3,130 Add: Note collected $1,200 7 Less: Outstanding checks Add: Interest earned $ 80 8 Check no: 475 $ 500 Less: NSF check $ -350 9 Check no: 476 $-3,550 Less: Service fees $ -45 10 Add: Bank error $ 550 11 Bank balance per reconciliation | $ 6,085 Company balance per reconciliation $6,085

D A B с 1 DIAZ ENTERTAINMENT 2 Bank Reconciliation 3 May 31, 2021 4 Bank's Cash Balance Company's Cash Balance 5 Per bank statement 6455 Per general ledger 5200 6 Add: Deposits in transit 3130 Add: Note collected 1200 7 Less: Outstanding checks Add: Interest earned =55+25 8 Check no: 475 -500 Less: NSF check -350 9 Check no: 476 -3550 Less: Service fees -45 10 Add: Bank error 550 11 Bank balance per reconciliation =SUM(B5:310) Company balance per reconciliation =SUM(D5:010)

Credit Transaction 1 Debit $ 1,280 General Journal Cash Notes receivable Interest revenue (To record the amounts that increase cash) $ 1,200 $ 80 2 $ 350 $ 45 Accounts receivable Bank service fees/Miscellaneous expense Cash (To record the amounts that decrease cash) $ 395