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 $1,080 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 19,500 TOTAL CHECKS AND DEBITS 9,853 TOTAL DEPOSITS AND CREDITS 11,820 CURRENT BALANCE 21,467 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,080 09/04 5902 728 09/07 5901 1,835 09/17 669 NSF 09/20 5905 09/22 5903 403 09/22 5904 2,143 09/28 5907 239 09/29 5909 1,852 DEPOSITS AND CREDITS Date Amount 09/05 1.201 09/12 2,224 09/21 4,466 09/25 2,392 09/30 17 IN 09/30 1,520 CM 984 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,201 2,224 4,466 2,392 30 1,798 12.081 728 Cash Payments Cash Check No. Credit 5901 1,835 5902 5903 403 5904 2,105 5905 904 5906 1,036 5907 239 5908 5909 1,852 9,550 448 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Credit Balance 17,924 30,005 9,550 20,455 R12 D23 12,081 Additional Information (a) Check No. 5904 is correctly drawn for $2,143 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 $2,105. (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 $1,520 note for Chavez Company by the bank. The collection is not yet recorded. 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 $ 0 Adjusted book balance 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.) View transaction list Journal entry worksheet 2 3 4 5 6 Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits Date General Journal Debit Credit Sept 30 Record entry Clear entry View general journal 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.) View transaction list Journal entry worksheet 3 4 5 6 Record the entry related to interest earned, if required. Note: Enter debits before credits. Date General Journal Debit Credit Sept 30 Record entry Clear entry View general journal 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.) View transaction list Journal entry worksheet