Posted: February 10th, 2021

Problem 4-3a prepare the bank reconciliation and record cash

Problem 4-3A Prepare the bank reconciliation and record cash adjustments (LO5)

[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, 2015, to May 31, 2015
Cash Balance
May 1, 2015
+ Deposits   Checks = Cash Balance
May 31, 2015

 
   
 
$5,320           $11,840          $11,980           $5,180        
               
Deposits   Checks

 
Date Desc. Amount   Date No. Desc. Amount



 



   5/3 Sales $  1,420           5/7 471     Legal fees $  1,260     
   5/10 Sales 1,850           5/12 472     Property tax 1,630     
   5/17 Sales 2,480           5/15 473     Salaries 3,560     
   5/24 Sales 2,950           5/22 474     Advertising 1,460     
   5/31 Sales 3,140           5/30 475     Supplies 510     
           5/31 476     Salaries 3,560     
   
       
    $11,840              $11,980     
   

       


  

   P.O. Box 162647
  Bowlegs, OK 74830
  (405) 369-CASH
MIDWEST BANK
Looking Out For You
Member FDIC
     
  Account Holder:      Diaz Entertainment
    124 Saddle Blvd.
    Bowlegs, OK 74830
Account Number:

Statement Date:

7772854360

May 31, 2015





Beginning Balance Deposits and Credits   Withdrawals
and Debits
Ending Balance
 
 
 
May 1, 2015 No. Total   No. Total May 31, 2015







$ 6,220 7 $ 9,782   9 $ 9,776 $ 6,226
Deposits and Credits   Withdrawals and Debits   Daily Balance

 
 
Date Amount Desc. Date No. Amount Desc. Date Amount









     5/4 $ 1,420          DEP      5/1 469 $  510        CHK      5/1 $ 5,710    
     5/11 1,850          DEP      5/2 470 390        CHK      5/2 5,320    
     5/18 2,480          DEP      5/9 471 1,260        CHK      5/4 6,740    
     5/20 1,000          NOTE      5/11   360        NSF      5/9 5,480    
     5/20 56          INT      5/12 472 1,630        CHK      5/11 6,970    
     5/25 2,950          DEP      5/18 473 3,560        CHK      5/12 5,340    
     5/31 26          INT      5/20   560        EFT      5/18 4,260    
           5/25 474 1,460        CHK      5/20 4,756    
           5/31   46        SF      5/25 6,246    
 
     
       5/31 $ 6,226    
  $ 9,782            $9,776           
 

     

     

   

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:
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, 2015.

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.

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