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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 $1,021 and No. 5893 for $516. 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 19.000 9,764 11,017 21,053 CHECKS AND DEDITS Date No. Amount 09/03 5888 1,021 09/04 5902 222 09/07 5901 1,893 09/17 640 NSE 09/20 5905 906 09722 5903 358 09/22 5904 2,113 09/28 590% 236 09/29 5909 1.875 DEPOSITS AND CREDITS Date Amount 09/05 1,178 09/12 2.245 09/21 4.329 09/25 2,383 09/30 22 IN 09/30 1,660 CM From Chavez Company's Accounting Records Cash Receipt. Deponited Cash Date Debit Sept. 5 1,178 12 2,245 21 4,329 25 2,083 30 1,655 11.790 Cash Payment Cash Check No. Credit 5901 1.893 29 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,178 12 2,245 21 4,329 25 2,383 30 1,655 11,790 Cash Payments Cash Check No. Credit 5901 1,893 5902 722 5903 358 5904 2.068 5905 906 5906 1,031 5907 236 5908 353 5909 1,875 9,442 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total recept 30 Total payment Acet. No. 101 Credit Balance 12,463 29,253 9,442 19,811 11,990 R12 023 Additional Information (a) 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 $2,068 (a) 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 $2,068. (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 $1,660 note for Chavez Company by the bank. The collection is not yet recorded Problem 6-5A (Algo) 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: Doduct Deduct Adjusted book balance Adjusted bank balance of 3

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