Accounting

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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

 
DateDesc.Amount DateNo.Desc.Amount



 



   5/3Sales$  1,370         5/7471    Legal fees$  1,210     
   5/10Sales1,800         5/12472    Property tax1,580     
   5/17Sales2,430         5/15473    Salaries3,510     
   5/24Sales2,900         5/22474    Advertising1,410     
   5/31Sales3,090         5/30475    Supplies460     
       5/31476    Salaries3,510     
  
    
  $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 BalanceDeposits and Credits Withdrawals
and Debits
Ending Balance
 
 
 
May 1, 2015No.Total No.TotalMay 31, 2015







$ 6,1707$ 9,672 9$ 9,371$ 6,471
Deposits and Credits Withdrawals and Debits Daily Balance

 
 
DateAmountDesc.DateNo.AmountDesc.DateAmount









     5/4$ 1,370         DEP     5/1469$  460       CHK     5/1$ 5,710    
     5/111,800         DEP     5/2470340       CHK     5/25,370    
     5/182,430         DEP     5/94711,210       CHK     5/46,740    
     5/201,100         NOTE     5/11 310       NSF     5/95,530    
     5/2051         INT     5/124721,580       CHK     5/117,020    
     5/252,900         DEP     5/184733,510       CHK     5/125,440    
     5/3121         INT     5/20 510       EFT     5/184,360    
        5/254741,410       CHK     5/205,001    
        5/31 41       SF     5/256,491    
 
   
      5/31$ 6,471    
 $ 9,672        $9,371        
 

   

   

   
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.

 

 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


 
 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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