Problem 4-3A Prepare the bank reconciliation and record cash adjustments (LO5) [The following information applies to the questions displayed below.] The cash...

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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

 
DateDesc.Amount DateNo.Desc.Amount



 



   5/3Sales$  1,420         5/7471    Legal fees$  1,260     
   5/10Sales1,850         5/12472    Property tax1,630     
   5/17Sales2,480         5/15473    Salaries3,560     
   5/24Sales2,950         5/22474    Advertising1,460     
   5/31Sales3,140         5/30475    Supplies510     
       5/31476    Salaries3,560     
  
    
  $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 BalanceDeposits and Credits Withdrawals
and Debits
Ending Balance
 
 
 
May 1, 2015No.Total No.TotalMay 31, 2015







$ 6,2207$ 9,782 9$ 9,776$ 6,226
Deposits and Credits Withdrawals and Debits Daily Balance

 
 
DateAmountDesc.DateNo.AmountDesc.DateAmount









     5/4$ 1,420         DEP     5/1469$  510       CHK     5/1$ 5,710    
     5/111,850         DEP     5/2470390       CHK     5/25,320    
     5/182,480         DEP     5/94711,260       CHK     5/46,740    
     5/201,000         NOTE     5/11 360       NSF     5/95,480    
     5/2056         INT     5/124721,630       CHK     5/116,970    
     5/252,950         DEP     5/184733,560       CHK     5/125,340    
     5/3126         INT     5/20 560       EFT     5/184,260    
        5/254741,460       CHK     5/204,756    
        5/31 46       SF     5/256,246    
 
   
      5/31$ 6,226    
 $ 9,782        $9,776        
 

   

   

   

Desc.DEP Customer depositINT Interest earnedSF Service fees
 NOTE Note collectedCHK Customer checkNSF 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.

    • 6 years ago
    • 5
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