Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,028 and No. 5893 for $494. Check No. 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation.

Additional Information:

(a) Check No. 5904 is correctly drawn for $2,090 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,060.

(b) The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company.

(c) The collection of the note on September 30 is not yet recorded by the company.

Required
1. Prepare the September 30 bank reconciliation for this company.
2. Prepare journal entries to adjust the book balance of cash to the reconciled balance.

Transcribed Image Text:

Date Sep. 1 Sep. 3 Sep. 4 Sep. 5 Sep. 7 Sep. 12 Sep. 17 Sep. 20 Sep. 21 Sep. 22 Sep. 22 Sep. 25 Sep. 28 Sep. 29 Sep. 30 Sep. 30 Description Check # 5888 Check # 5902 Cash deposit Check # 5901 Cash deposit NSF check Check # 5905 Cash deposit Check # 5903 Check # 5904 Cash deposit Check # 5907 Check # 5909 Collected note Interest earned Withdrawals Deposits $1,028 $719 $1,824 $ 600 $ 937 $399 $2,090 $213 $1,807 $1,103 $2,226 $4,093 $2,351 $1,485 $ 12 Balance $16,800 $15,772 $15,053 $16,156 $14,332 $16,558 $15,958 $15,021 $19,114 $18,715 $16,625 $18,976 $18,763 $16,956 $18,441 $18,453