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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

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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 $1.028 and No. 5893 for $194. Check No. 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation Problem 3-5A Precaring a bank conta n d From the September 30 Bank Statement TOTAL CHECKS AND DEBITS PREVIOUS BALANCE 16.800 TOTAL DEPOSITS AND CROS 11270 I 9.617 DEPOSITS AND CREDITS NO 719 Sep. 5 Sep. 12 Sep. 21 CHECKS AND DEBITS Date Amount Sep 3 588 1,028 Sep 4 5902 Sep 7 5901 1.824 Sep 17 600 NS Sep 20 5905 937 Sep. 22 5903 399 Sep. 22 5904 2.090 Sep. 28 5907 213 Sep. 29 5909 1.807 1.100 2225 4093 251 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit Cash Payments Check No. Cash Credit Sep. 1.103 2.226 4,093 5901 5902 5903 5904 5905 5906 5907 5908 5909 1,824 719 399 2.050 937 982 213 Acct. No. 101 Date Explanation PR Debit Credit Balance Aug 1,807 9,329 Sep Balance Total receipts Total payments R12 11.455 15.278 26.733 17.404 9.329 Additional Information (a) Check No. 5904 is correctly drawn for $2,090 to pay for computer equip ment; 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 $2.060. (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 $1.485 note for Chavez Company by the bank. The collection is not yet recorded. Required 1. Check (1) Reconciled balance. $18.271:21 Notes Receivable $1 485 2. Prepare journal entries to adjust the book balance of cash to the reconciled balance

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