The cash records and bank statement for the month of May for Diaz Entertainment are shown below.
Question:
The cash records and bank statement for the month of May for Diaz Entertainment are shown below.
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, 2012.
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, 2012.
2. Record the necessary cash adjustments.
Transcribed Image Text:
DIAZ ENTERTAINMENT Cash Account Records May 1, 2012, to May 31, 2012 Cash Balance Cash Balance May 1. 2012 Deposits $11,540 Checks May 31, 2012 $11,620 S5,380 S5,300 Checks Desc. Date 5/3 5/10 Amount Sales 1,360 Desc. Sales Sales Sales Sales Sales Date No Amount 471 Legal fees 472 Property tax 473 474 475 Supplies 476 1,200 1,570 3,500 1,400 450 3,500 $11,620 1,790 5/12 2,420 5/15 2,890 5/22 3,0805/30 5/31 Salaries Advertising Salaries 5/24 5/31 $11,540 P.O. Box 162647 Bowlegs, OK 74830 (405) 369-CASH Account Holder: Member FDIC Midwest Bank Looking Out For You Diaz Entertainment 124 Saddle Blvd. Bowlegs, OK 74830 Account Number: 7772854360 Statement Date: May 31, 2012 Withdrawals and Debits Ending Balance Beginning Balance May 1, 2012 S6,160 Deposits and Credits Total Total May 31, 2012 $9,530 $9,290 $6,400 osits and Credits Withdrawals and Debits Daily Balance Date Amount Desc. Date No. Amount Desc Amount $5,710 5,380 6,740 5,540 7,030 5,460 4,380 4,930 6,420 $6,400 5/4 $1,360 DEP 1,790 DEP 5/18 2,20 DERP 5/1 469 450 CHK 330 CHK /9 471 1,200 CHK 300 NSF 5/12 472 1,570 CHK 5/18 43 3,500 CHK 500 EFT 1,400 CHK 5/2 470 4 5/4 5/20 1,000 NOTE 50 INT 5/25 2,890 DER 20 INT 5/12 5/18 5/25 474 5/31 40 SF 5/25 5/31 Desc. DEP Customer deposit NOTE Note collected EFT Electronic funds transfer INT Interest earned CHK Customer check SF Service fees NSF Nonsufficient funds
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Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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