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 TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 16,800 9,617 11,270 18,453 CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount Date Amount 09/03 5888 1,028 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 Companys Accounting Records Cash Receipts Deposited Date Cash Debit Sept. 5 1,103 12 2,226 21 4,093 25 2,351 30 1,682 11,455

Cash Payments Check No. Cash 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 Acct. No. 101 Date Explanation PR Debit Credit Balance Aug. 31 Balance 15,278 Sept. 30 Total receipts R12 11,455 26,733 30 Total payments D23 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 yet recorded. Problem 8-5A Part 1 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)