please explain interet earned

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 May 31, 2021 $5,100 Cash Balance Cash May 1, 2021 + Receipts $5,280 $12,040 Cash Receipts Date Dese. 5/3 Sales 5/10 Sales 5/17 Sales 5/24 Sales 5/31 Sales Amount $ 1,460 1,890 2,520 2,990 3,180 Date 5/7 5/12 5/15 5/22 5/30 5/31 Cash Disbursements $12,220 Cash Disbursements Check Desc. 471 Legal fees 472 Property tax 473 Salaries 474 Advertising 475 Supplies 476 Salaries Amount $ 1,300 1,670 3,600 1,500 550 3,600 $12,220 $12,040 Member FDIC 7772854360 May 31, 2021 NO. Ending Balance May 31, 2021 $6,210 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 Beginning Balance Deposits and Credits Withdrawals and Debits May 1, 2021 Total NO. Total $6,260 7 $10,050 9 $10,100 Account Details Deposits and Credits Withdrawals and Debits Date Amount Date No. Amount Desc. 5/4 $ 1,460 DEP 5/1 469 $ 550 CHK 5/11 1,890 DEP 5/2 470 430 CHK 5/18 2,520 DEP 5/9 471 1,300 CHK 5/20 1,100 NOTE 5/11 400 NSF 5/20 60 INT 5/12 472 1,670 CHK 5/25 2,990 DEP 5/18 473 3,600 CHK 5/31 30 INT 5/20 600 EFT 5/25 474 1,500 CHK 5/31 SF $ 10,050 $10,100 Desc. Daily Balance Date Amount 5/1 $5,710 5/2 5,280 5/4 6,740 5/9 5,440 5/11 6,930 5/12 5,260 5/18 4,180 5/20 4,740 5/25 6,230 5/31 $6,210 50 Desc. DEP Customer deposit NOTE Note collected EFT Electronic funds transfer INT Interest earned CHK Customer check SF Service fees NSF Nonsufficient funds $10,050 $10,100 5/31 $6,210 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 ar #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 minus sign. Total entries to the same account together when entering in the bank reconciliation.) Bank's Cash Balance Per bank statement Deposits outstanding Checks outstanding Bank error DIAZ ENTERTAINMENT Bank Reconciliation May 31, 2021 Company's Cash Balance $ 6,210 Per general ledger $ 3,180 Service fees (4.150) Interest earned 600 NSF check Note collected $ 5,840 Company balance per reconciliation $ 5,100 (50) 140 (400) 1.100 5,840 Bank balance per reconciliation Required information Answer is complete but not entirely correct. Bank's Cash Balance Per bank statement $ Deposits outstanding Checks outstanding Bank error DIAZ ENTERTAINMENT Bank Reconciliation May 31, 2021 Company's Cash Balance 6,210 Per general ledger 3,180 Service fees (4,150) Interest earned 600 5,100 (50) 140 X NSF check (400) 1,100 Bank balance per reconciliation $ 5,840 Note collected Company balance per reconciliation 5,840