6-5A Preparing a bank reconciliation and recording adjustments LO P3 [The following information applies to the questions displayed below.] 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. From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEBITS 16,800 9,617 TOTAL DEPOSITS AND CREDITS 11,270 CURRENT BALANCE 18,453 09/03 5888 CHECKS AND DEBITS Date No. Amount 1,028 DEPOSITS AND CREDITS Date: Amount 09/05 1,103 09/04 5902 719 09/12 2,226 09/07 5901 1,824 09/21 4,093 09/17 600 NSF 09/25 2,351 09/20 5905 937 09/30 12 IN 09/22 5903 399 09/30 1,485 CM 09/22 5904 2,090 09/28 5907 213 09/29 5909 1,807 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,103) 12 2,226 21 4,093 25 2,351 30 1,682 11,455 Cash Date: Debit Sept. 5 1,103 12 2,226 21- 4,093 25 2,351 30 1,682 11,455 Cash Payments Cash Check No. Credit 5901 1,824 5902 719 5903 399 5904 2,060 5905 937 5906 982 5907 213 5908 388 5909 1,807 9,329 Cash Date Explanation PRI Acct. No. 101 Debit Credit Balance Aug. 31 Balance 15,278 Sept. 30 Total receipts 30 Total payments R12 11,455 023 26,733 9,329 17,404 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 credit memorandum (CM) is from the collection of a $1,485 note for Chavez Company by the bank. The collection is not vet recorded. Problem 6-5A Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company. Bank statement balance Add: Deposit of Sept. 30 Deduct CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add: Interest earned Notes proceeds 0 0 Deduct NSF check Error (check 5904) 0 0 0 0 Adjusted bank balance $ 0 Adjusted book balance $ 0