The cash records and bank statement for the month of May for Diaz Entertainment are shown below.
Question:
Additional information:
a. The difference in the beginning balances in the companys 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.
Required:
1. Prepare a bank reconciliation for Diazs checking account on May 31, 2015.
2. Record the necessary cashadjustments.
Transcribed Image Text:
DIAZ ENTERTAINMENT Cash Account Records May 1, 2015, to May 31, 2015 Cash Balance May 1, 2015 $5,280 Cash Balance Deposits $12,040 Checks May 31, 2015 $12,220 $5,100 Date 5/3 5/10 Desc. Sales Sales Sales Sales Sales Amount Date Desc. Amount $1,460 1,890 2,520 2,990 3,180 $1,300 1,670 3,600 1,500 550 3,600 $12,220 471 472 Legal fees 5/24 5/31 5/22 5/30 5/31 474 475 476 Advertising Salaries $12,040 Р.О. Box 162647 Bowlegs, OK 74830 (405) 369-CASH Account Holder: Diaz Entertainment Member FDIC Midwest Bank Looking Out For You Account Number: 7772854360 124 Saddle Blvd. Bowlegs, OK 74830 Statement Date May 31, 2015 Beginning Balance May 1, 2015 $6,260 Deposits and Credits Withdrawals and Debits Ending Balance May 31, 2015 $6,210 Daily Balance No Tota Total $10,050 $10,100 Deposits and Credits Withdrawals and Debits Date Amount Desc 5/4 $1,460 DEP 1,890 DEP 518 2,520 DEP Date No. Amount Desc 5/1 469 550 CHK 5/2 470 5/9 471 1,300 CHK $5,710 5,280 6,740 5,440 6,930 5,260 4,180 4,740 430 CHK 5/2 5/9 5/12 5/20 5/20 1,100 NOTE 60 INT 5/25 2,990 DEP 30 INT 5/12 472 5/18 473 5/20 5/25 474 5/31 400 NSF 1,670 CHK 3,600 CHK 600 EFT 1,500 CHK 5/31 5/20 5/25 5/31 $10,050 S10,100 $6,210 Desc. DEP Customer deposit NOTE Note collected EFT Electronic funds transfer INT Interest eared SF Service fees CHK Customer check NSF Nonsufficient funds
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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