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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

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


 


 

 


 


$5,280        

 

$12,040     

 

 

$12,220        

 

$5,100        

 

 

 

 

 

 

 

 

 

Deposits

 

Checks


 


Date

Desc.

Amount

 

Date

No.

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
  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








$ 6,260

7

$ 10,050

 

9

$ 10,100

$ 6,210

 

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    

 


 

 

 


 

     5/31

$ 6,210    

 

$ 10,050     

 

 

 

$10,100     

 

 

 

 



 

 

 



 

 

 


   

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.

 

Answer:

Problem 4-3A Part 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.)

 

Problem 4-3A Part 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.)

Exercise 4-16 Calculate operating cash flows (LO7)

Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.

 

a.

Cash used for purchase of office supplies, $2,400.

b.

Cash provided from consulting to customers, $50,600.

c.

Cash used for purchase of mining equipment, $83,000.

d.

Cash provided from long-term borrowing, $70,000.

e.

Cash used for payment of employee salaries, $25,000.

f.

Cash used for payment of office rent, $13,000.

g.

Cash provided from sale of equipment purchased in c. above, $23,500.

h.

Cash used to repay a portion of the long-term borrowing in d. above, $45,000.

i.

Cash used to pay office utilities, $5,300.

j.

Purchase of company vehicle, paying $11,000 cash and borrowing $16,000.

 

 

Required:

Calculate cash flows from operating activities. (List cash outflows as negative amounts.)

 

Exercise 4-17 Calculate investing cash flows (LO7)

 

 

Required:

Calculate cash flows from investing activities. (List cash outflows as negative amounts.)

 

Exercise 4-18 Calculate Financing cash flows (LO7)

 

 

Required:

Calculate cash flows from financing activities. (List cash outflows as negative amounts.)

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