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 $1,064 and No. 5893 for $492. 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 17,000 TOTAL CHECKS AND DEBITS 9,928 TOTAL DEPOSITS AND CREDITS 11,532 CURRENT BALANCE 18,604 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,064 09/04 5902 789 09/07 5901 1,894 09/17 675 NSF 09/20 5905 939 09/22 5903 364 09/22 5904 2,057 09/28 5907 274 09/295909 1,872 DEPOSITS AND CREDITS Date Amount 09/05 1,157 09/12 2,296 09/21 4,059 09/25 2,368 09/30 22 IN 09/30 1,630 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,157 2,296 4,059 2,368 1,691 11,571 Cash Payments Cash Check No. Credit 5901 1,894 5902 789 5903 364 5904 2,019 5905 939 5906 1,039 274 5908 355 5909 1,872 9,545 5907 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 15,444 27,015 17,470 R12 D23 11,571 9,545 Additional Information (a) Check No. 5904 is correctly drawn for $2,057 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 $2,019. (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 $1,630 note for Chavez Company by the bank. The collection is not yet recorded. Problem 6-5A Part 1 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: 01 0 Adjusted book balance 0 0 Adjusted bank balance $