Question

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 1, 2021 + Cash Receipts − Cash Disbursements = May 31, 2021 $5,280 $12,040 $12,220 $5,100 Cash Receipts Cash Disbursements Date Desc. Amount Date Check# Desc. Amount 5/3 Sales $ 1,460 5/7 471 Legal fees $ 1,300 5/10 Sales 1,890 5/12 472 Property tax 1,670 5/17 Sales 2,520 5/15 473 Salaries 3,600 5/24 Sales 2,990 5/22 474 Advertising 1,500 5/31 Sales 3,180 5/30 475 Supplies 550 5/31 476 Salaries 3,600 $ 12,040 $ 12,220 P.O. Box 162647 Midwest Bank Member FDIC Bowlegs, OK 74830 Looking Out For You (405) 369-CASH Account Holder: Diaz Entertainment Account Number: 7772854360 124 Saddle Blvd, Bowlegs, OK 74830 Statement Date: May 31, 2021 Account Summary Beginning Balance Deposits and Credits Withdrawals and Debits Ending Balance May 1, 2021 NO. Total NO. Total May 31,

2021 $6,260 7 $10,050 9 $10,100 $6,210 Account Details Deposits and Credits Withdrawals and Debits Daily Balance Date Amount Desc. Date No. Amount Desc. Date Amount 5/4 $ 1,460 DEP 5/1 469 $ 550 CHK 5/1 $ 5,710 5/11 1,890 DEP 5/2 470 430 CHK 5/2 5,280 5/18 2,520 DEP 5/9 471 1,300 CHK 5/4 6,740 5/20 1,100 NOTE 5/11 400 NSF 5/9 5,440 5/20 60 INT 5/12 472 1,670 CHK 5/11 6,930 5/25 2,990 DEP 5/18 473 3,600 CHK 5/12 5,260 5/31 30 INT 5/20 600 EFT 5/18 4,180 5/25 474 1,500 CHK 5/20 4,740 5/31 50 SF 5/25 6,230 $ 10,050 $ 10,100 5/31 $ 6,210 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: 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, 2021 (prior month). 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 a minus sign. Total entries to the same account together when entering in the bank reconciliation.)

Answer 1

Bank reconciliation statement

as at May 31st , 2021

Balance as per cash account $ 5100

Add: Cheq issued by us but not presented to bank

#475 Supplies $ 550

#476 Salaries $ 3600

Add: interest credited by bank but not accounted by us (60+30) $ 90

Add: Note credited by bank but not by us $ 1100

Less: Service fees (SF) charged by bank but not accounted by us    - 50

Less: Deposit by us but not yet cleared - 3180

Less: debit by bank for Not sufficient funds (NSF)    -400

Less: EFT error, wrong debit by bank       - 600

Bank balance as per bank 6210