Accounting

Abby Timmons

ACC 201 - FINANCIAL ACCOUNTING: SPRING 2015; Section 3001, WebCollege

CHAPTER 4 PROBLEMS

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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

$5,370 $11,590 $11,680 $5,280

Deposits Checks

Date Desc. Amount Date No. Desc. Amount

   5/3 Sales $ 1,370 5/7 471 Legal fees $ 1,210

   5/10 Sales 1,800 5/12 472 Property tax 1,580

   5/17 Sales 2,430 5/15 473 Salaries 3,510

   5/24 Sales 2,900 5/22 474 Advertising 1,410

   5/31 Sales 3,090 5/30 475 Supplies 460

           5/31 476 Salaries 3,510

    $11,590 $11,680

   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 Balance Deposits and Credits Withdrawals

and Debits Ending Balance

May 1, 2015 No. Total No. Total May 31, 2015

$ 6,170 7 $ 9,672 9 $ 9,371 $ 6,471

Deposits and Credits Withdrawals and Debits Daily Balance

Date Amount Desc. Date No. Amount Desc. Date Amount

     5/4 $ 1,370 DEP 5/1 469 $ 460 CHK 5/1 $ 5,710

     5/11 1,800 DEP 5/2 470 340 CHK 5/2 5,370

     5/18 2,430 DEP 5/9 471 1,210 CHK 5/4 6,740

     5/20 1,100 NOTE 5/11 310 NSF 5/9 5,530

     5/20 51 INT 5/12 472 1,580 CHK 5/11 7,020

     5/25 2,900 DEP 5/18 473 3,510 CHK 5/12 5,440

     5/31 21 INT 5/20 510 EFT 5/18 4,360

           5/25 474 1,410 CHK 5/20 5,001

           5/31 41 SF 5/25 6,491

       5/31 $ 6,471

  $ 9,672 $9,371

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:

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.

 1.

Required:

1.

Prepare a bank reconciliation for Diaz's checking account on May 31, 2015. (Total entries to the same account together when entering in the bank reconciliation and journal entry carousel.)

rev: 10_28_2014_QC_57681

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 2.

2.

Record the necessary cash adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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