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 $1,066 and Number 5893 for $517 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 $ 18,500 September 3 Check 5888 $ 1,066 $ 17,434 September 4 Check 5902 $ 721 $ 16,713 September 5 Cash deposit $ 1,170 $ 17,883 September 7 Check 5901 $ 1,856 $ 16,027 September 12 Cash deposit $ 2,295 $ 18,322 September 17 NSF check $ 670 $ 17,652 September 20 Check 5905 $ 906 $ 16,746 September 21 Cash deposit $ 4,408 $ 21,154 September 22 Check 5903 $ 362 $ 20,792 September 22 Check 5904 $ 2,059 $ 18,733 September 25 Cash deposit $ 2,398 $ 21,131 September 28 Check 5907 $ 231 $ 20,900 September 29 Check 5909 $ 1,871 $ 19,029 September 30 Collected note $ 1,640 $ 20,669 September 30 Interest earned $ 18 $ 20,687 From Chavez Companys Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,170 September 12 2,295 September 21 4,408 September 25 2,398 September 30 1,718 11,989 Cash Payments Check Number Cash Credit 5901 1,856 5902 721 5903 362 5904 2,022 5905 906 5906 975 5907 231 5908 397 5909 1,871 9,341 Cash Account Number 101 Date Explanation PR Debit Credit Balance August 31 Balance 16,917 September 30 Total receipts R12 11,989 28,906 September 30 Total payments D23 9,341 19,565 Additional Information (a) Check Number 5904 is correctly drawn for $2,059 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 $2,022 (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 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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 11, 2024

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 $1,066 and Number 5893 for $517. 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				$ 18,500
September 3	Check #5888	$ 1,066		$ 17,434
September 4	Check #5902	$ 721		$ 16,713
September 5	Cash deposit		$ 1,170	$ 17,883
September 7	Check #5901	$ 1,856		$ 16,027
September 12	Cash deposit		$ 2,295	$ 18,322
September 17	NSF check	$ 670		$ 17,652
September 20	Check #5905	$ 906		$ 16,746
September 21	Cash deposit		$ 4,408	$ 21,154
September 22	Check #5903	$ 362		$ 20,792
September 22	Check #5904	$ 2,059		$ 18,733
September 25	Cash deposit		$ 2,398	$ 21,131
September 28	Check #5907	$ 231		$ 20,900
September 29	Check #5909	$ 1,871		$ 19,029
September 30	Collected note		$ 1,640	$ 20,669
September 30	Interest earned		$ 18	$ 20,687

From Chavez Companys Accounting Records

Date	Cash Debit
Cash Receipts Deposited
September 5	1,170
September 12	2,295
September 21	4,408
September 25	2,398
September 30	1,718
	11,989

Check Number	Cash Credit
Cash Payments
5901	1,856
5902	721
5903	362
5904	2,022
5905	906
5906	975
5907	231
5908	397
5909	1,871
	9,341

Date	Explanation	PR	Debit	Credit	Balance
Cash			Account Number 101
August 31	Balance				16,917
September 30	Total receipts	R12	11,989		28,906
September 30	Total payments	D23		9,341	19,565

Additional Information

(a) Check Number 5904 is correctly drawn for $2,059 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 $2,022.
(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.

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.)