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 $1,075 and No. 5893 for $508. The following information is available for its September 30, 2016, reconciliation.

From the September 30 Bank Statement

PREVIOUS BALANCE	TOTAL CHECKS AND DEBITS	TOTAL DEPOSITS AND CREDITS	CURRENT BALANCE
19,000	9,902	11,861	20,959

CHECKS AND DEBITS				DEPOSITS AND CREDITS			DAILY BALANCE
Date	No.	Amount		Date	Amount		Date	Amount
09/03	5888	1,075		09/05	1,148		08/31	19,000
09/04	5902	737		09/12	2,241		09/03	17,925
09/07	5901	1,894		09/21	4,495		09/04	17,188
09/17		653	NSF	09/25	2,376		09/05	18,336
09/20	5905	968		09/30	22	IN	09/07	16,442
09/22	5903	352		09/30	1,579	CM	09/12	18,683
09/22	5904	2,113					09/17	18,030
09/28	5907	247					09/20	17,062
09/29	5909	1,863					09/21	21,557
							09/22	19,092
							09/25	21,468
							09/28	21,221
							09/29	19,358
							09/30	20,959

From Chavez Companys Accounting Records

Cash Receipts Deposited

Date

Cash Debit

Sept. 5

1,148

12

2,241

21

4,495

25

2,376

30

1,772

12,032

Cash

	CASH				ACC. NO. 101
DATE	Explanation	PR	DEBIT	CREDIT	BALANCE
Aug 31	balance				17,417
Sep 30	Total receipts	R12	12032		29,449
30	Total disbursements	D23		9,571	19,878

Additional Information

Check No. 5904 is correctly drawn for $2,113 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 $2,071. 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. The credit memorandum is from the collection of a $1,600 note for Chavez Company by the bank. The bank deducted a $21 collection fee. The collection and fee are not yet recorded.

Required: PLEASE FILL IN SPACE REQUIRED AND DO JOURNAL ENTRY WORKSHEET

1. Prepare the September 30, 2016, bank reconciliation for this company.

CHAVEZ COMPANY
Bank Reconciliation
September 30, 2016
Bank statement balance			Book balance
Add:			Add:
Deduct:			Deduct:
Adjusted bank balance			Adjusted book balance

2. Prepare the journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

1.Record the entry related to the September 30 deposit, if required.

2.Record the entry related to interest earned, if required.

3.Record the entry related to the note receivable and the collection fee, if required.

4.Record the entry related to the outstanding checks, if required.

5.Record the entry related to the NSF check, if required.

6.Record the entry related to the error on check 5904, if required.