Chapter 8 COS HU, 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 Problem 3-5A Preparing a bank concern and From the September 30 Bank Statement PREVIOUS BALANCE 16.800 TOTAL CHECKS AND DEBITS 9517 TOTAL DEPOSITS AND CRITS 11.270 DEPOSITS AND CREDITS Date AM Sep 5 1.103 Sep 12 2.225 Sep 21 4093 Sep 25 2.251 Sep 30 Sep. 30 195 Sep CHECKS AND DEBITS Date Amount Sep 3 5888 1 028 Sep. 4 5902 719 5901 1.824 Sep. 17 600 NSE Sep 20 5905 937 Sep. 22 5903 399 2,090 5907 Sep. 29 5909 Sep. 22 5904 28 213 1807 Cash Receipts Deposited Date Cash Debit Sep 1,103 2.226 4,093 2.351 1.682 From Chavez Company's Accounting Records Cash Payments Check No Cash Credit 5901 1.824 5902 719 5903 399 5904 2,060 5905 937 5906 982 5907 213 Date Explanation 5908 Aug 31 Balance 5909 1.807 Total receipts 9,329 30 Total payments 11.455 Cash Acct. No. 101 Balance PR Debit Credit 388 Total receipts R12 D23 12 11855 11.455 15.278 26,733 17,404 2.7 9229 Additional Information (a) Check No. 5904 is correctly drawn for $2,090 to pay for computer equip ment: 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 yet recorded. 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. Check (1) Reconciled balance. $18.271:21 Notes Receivable $1.485