Question
Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for
Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,057 and Number 5893 for $519. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation.
| Date | Description | Withdrawals | Deposits | Balance |
|---|---|---|---|---|
| September 1 | $ 17,000 | |||
| September 3 | Check #5888 | $ 1,057 | $ 15,943 | |
| September 4 | Check #5902 | $ 765 | $ 15,178 | |
| September 5 | Cash deposit | $ 1,156 | $ 16,334 | |
| September 7 | Check #5901 | $ 1,816 | $ 14,518 | |
| September 12 | Cash deposit | $ 2,256 | $ 16,774 | |
| September 17 | NSF check | $ 645 | $ 16,129 | |
| September 20 | Check #5905 | $ 910 | $ 15,219 | |
| September 21 | Cash deposit | $ 4,130 | $ 19,349 | |
| September 22 | Check #5903 | $ 385 | $ 18,964 | |
| September 22 | Check #5904 | $ 2,077 | $ 16,887 | |
| September 25 | Cash deposit | $ 2,304 | $ 19,191 | |
| September 28 | Check #5907 | $ 213 | $ 18,978 | |
| September 29 | Check #5909 | $ 1,876 | $ 17,102 | |
| September 30 | Collected note | $ 1,610 | $ 18,712 | |
| September 30 | Interest earned | $ 23 | $ 18,735 |
From Chavez Company's Accounting Records
| Cash Receipts Deposited | |
|---|---|
| Date | Cash Debit |
| September 5 | 1,156 |
| September 12 | 2,256 |
| September 21 | 4,130 |
| September 25 | 2,304 |
| September 30 | 1,780 |
| 11,626 |
| Cash Payments | |
|---|---|
| Check Number | Cash Credit |
| 5901 | 1,816 |
| 5902 | 765 |
| 5903 | 385 |
| 5904 | 2,034 |
| 5905 | 910 |
| 5906 | 978 |
| 5907 | 213 |
| 5908 | 371 |
| 5909 | 1,876 |
| 9,348 |
| Cash | Account Number 101 | ||||
|---|---|---|---|---|---|
| Date | Explanation | PR | Debit | Credit | Balance |
| August 31 | Balance | 15,424 | |||
| September 30 | Total receipts | R12 | 11,626 | 27,050 | |
| September 30 | Total payments | D23 | 9,348 | 17,702 |
Additional Information
- (a) Check Number 5904 is correctly drawn for $2,077 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 $2,034.
- (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 collection of the note on September 30 is not yet recorded by the company.
Required:
1. Prepare the September 30 bank reconciliation for this company.
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
