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 $1,032 and No. 5893 for $496. 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 TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 18,500 9,951 11,636 20,185 CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount Date Amount 09/03 5888 1,032 09/05 1,154 09/04 5902 765 09/12 2,232 09/07 5901 1,839 09/21 4,405 09/17 681 NSF 09/25 2,315 09/20 5905 962 09/30 20 IN 09/22 5903 389 09/30 1,510 CM 09/22 5904 2,124 09/28 5907 269 09/29 5909 1,890 From Chavez Companys Accounting Records Cash Receipts Deposited Date Cash Debit Sept. 5 1,154 12 2,232 21 4,405 25 2,315 30 1,722 11,828 Cash Payments Check No. Cash Credit 5901 1,839 5902 765 5903 389 5904 2,080 5905 962 5906 984 5907 269 5908 392 5909 1,890 9,570 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Aug. 31 Balance 16,972 Sept. 30 Total receipts R12 11,828 28,800 30 Total payments D23 9,570 19,230 Additional Information (a) Check No. 5904 is correctly drawn for $2,124 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 $2,080. (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 $1,510 note for Chavez Company by the bank. The collection is not yet recorded.

Required information Problem 8-3A 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 $1,032 and No. 5893 for $496. 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 TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 18.500 9.951 11.636 20.185 Date 3888 5902 CHECKS AND DEBITS Amount 09.03 09.04 09.07 5901 0917 5905 5903 5904 5907 DEPOSITS AND CREDITS Amount 1,154 2.232 4,405 2.315 20 IN 1,510 CM SCERS, aaaaa 5909 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1.154 4,405 2.222 aan 2315 1.722 11.828 5901 Cash Payments Cash Check No Cred 1,839 5902 765 5903 389 5904 2.000 5905 5906 962 9,570 Credit Cash Date Explanation Aug 31 Balance Sept 30 Total receipts 30 Total payments PR B12 Debit 11,828 Acct. No. 101 Balance 16.972 28.800 19.230 9.570 Additional Information (a) Check No. 5904 is correctly drawn for $2,124 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 $2,080. (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 $1,510 note for Chavez Company by the bank. The collection is not yet recorded. Problem 8-5A Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add: Bank statement balance Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance