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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, 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 $1,074 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 $ 20,000
September 3 Check #5888 $ 1,074 $ 18,926
September 4 Check #5902 $ 744 $ 18,182
September 5 Cash deposit $ 1,169 $ 19,351
September 7 Check #5901 $ 1,823 $ 17,528
September 12 Cash deposit $ 2,255 $ 19,783
September 17 NSF check $ 643 $ 19,140
September 20 Check #5905 $ 989 $ 18,151
September 21 Cash deposit $ 4,385 $ 22,536
September 22 Check #5903 $ 438 $ 22,098
September 22 Check #5904 $ 2,051 $ 20,047
September 25 Cash deposit $ 2,317 $ 22,364
September 28 Check #5907 $ 221 $ 22,143
September 29 Check #5909 $ 1,871 $ 20,272
September 30 Collected note $ 1,640 $ 21,912
September 30 Interest earned $ 15 $ 21,927

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date Cash Debit
September 5 1,169
September 12 2,255
September 21 4,385
September 25 2,317
September 30 1,651
11,777
Cash Payments
Check Number Cash Credit
5901 1,823
5902 744
5903 438
5904 2,014
5905 989
5906 964
5907 221
5908 432
5909 1,871
9,496
Cash Account Number 101
Date Explanation PR Debit Credit Balance
August 31 Balance 18,409
September 30 Total receipts R12 11,777 30,186
September 30 Total payments D23 9,496 20,690

Additional Information

(a) Check Number 5904 is correctly drawn for $2,051 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 $2,014.

(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.

1. Prepare journal entries to adjust the book balance of cash to the reconciled balance.

image text in transcribed

Journal entry worksheet Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits

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