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 $1,069 and No. 5893 for $511. 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
19,500	9,925	11,874	21,449

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,069			09/05	1,131
09/04	5902	768			09/12	2,256
09/07	5901	1,891			09/21	4,496
09/17		678	NSF		09/25	2,313
09/20	5905	967			09/30	18	IN
09/22	5903	402			09/30	1,660	CM
09/22	5904	2,073
09/28	5907	227
09/29	5909	1,850

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,131
	12		2,256
	21		4,496
	25		2,313
	30		1,762
			11,958

Cash Payments
Check No.		Cash Credit
5901			1,891
5902			768
5903			402
5904			2,035
5905			967
5906			1,002
5907			227
5908			376
5909			1,850
			9,518

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				17,920
Sept. 30	Total receipts	R12	11,958		29,878
30	Total payments	D23		9,518	20,360

Additional Information

1. (a) Check No. 5904 is correctly drawn for $2,073 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 $2,035.
2. (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.
3. (c) The credit memorandum (CM) is from the collection of a $1,660 note for Chavez Company by the bank. The collection is not yet recorded.

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.