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 $1,091 and No. 5893 for $518. The following information is available for its September 30, 2015, reconciliation. From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 17,000 10,020 11,764 18,744 CHECKS AND DEBITS DEPOSITS AND CREDITS DAILY BALANCE Date No. Amount Date Amount Date Amount 09/03 5888 1,091 09/05 1,128 08/31 17,000 09/04 5902 797 09/12 2,275 09/03 15,909 09/07 5901 1,864 09/21 4,477 09/04 15,112 09/17 664 NSF 09/25 2,347 09/05 16,240 09/20 5905 991 09/30 14 IN 09/07 14,376 09/22 5903 417 09/30 1,523 CM 09/12 16,651 09/22 5904 2,103 09/17 15,987 09/28 5907 241 09/20 14,996 09/29 5909 1,852 09/21 19,473 09/22 16,953 09/25 19,300 09/28 19,059 09/29 17,207 09/30 18,744 From Chavez Companys Accounting Records Cash Receipts Deposited Date Cash Debit Sept. 5 1,128 12 2,275 21 4,477 25 2,347 30 1,695 11,922 Cash Disbursements Check No. Cash Credit 5901 1,864 5902 797 5903 417 5904 2,066 5905 991 5906 1,015 5907 241 5908 448 5909 1,852 9,691 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Aug. 31 Balance 15,391 Sept. 30 Total receipts R12 11,922 27,313 30 Total disbursements D23 9,691 17,622 Additional Information Check No. 5904 is correctly drawn for $2,103 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 $2,066. 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. The credit memorandum is from the collection of a $1,540 note for Chavez Company by the bank. The bank deducted a $17 collection fee. The collection and fee are not yet recorded.

Required 1. Prepare the September 30, 2015, bank reconciliation for this company CHAVEZ COMPANY Bank Reconciliation September 30, 2015 18,744 Book balance Add Bank statement balance 17,622 Add Deposit of Sept. 30 1,695 Interest earned 15 Proceeds of note less $17 fee 1,695 20,439 15 17,637 Deduct Deduct: NSF check Check No. 5893 Check No. 5906 Check No. 5908 518 1,015 448 664 Check No. 5904 1,981 664 16,973 Adjusted bank balance $18,458 Adjusted book balance