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 $1019 and No. 5893 for $501. Check No. 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation.
Prepare the September 30 bank reconciliations for this company.
! Required information Problem 6-5A (Algo) Preparing a bank reconciliation and recording adjustments LO P3 [The following information applies to the questions displayed below.] 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 $1,019 and No. 5893 for $501. 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 18,000 TOTAL CHECKS AND DEBITS 9,761 TOTAL DEPOSITS AND CREDITS 11,417 CURRENT BALANCE 19,656 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,019 09/04 5902 779 09/07 5901 1,837 09/17 611 NSF 09/20 5905 957 09/22 5903 371 09/22 5904 2,065 09/28 5907 266 09/29 5909 1,856 DEPOSITS AND CREDITS Date Amount 09/05 1,107 09/12 2,223 09/21 4,111 09/25 2,335 09/30 21 IN 09/30 1,620 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,107 12 21 4,111 25 2,335 30 1,658 11, 434 2,223 Cash Payments Cash Check No. Credit 5901 1,837 5902 2,021 1,035 779 371 21 957 5903 3903 5904 09 5905 5905 5906 5907 5908 5909 266 427 1,856 9,549 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Credit Balance 16,480 27,914 9,549 18,365 R12 D23 11, 434 Additional Information (a) Check No. 5904 is correctly drawn for $2,065 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 $2,021. (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 $1,620 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 19,656 Book balance Bank statement balance $ Add: Add: 0 0 19,656 0 Deduct: Deduct: 0 0 Adjusted bank balance 0 19,656 Adjusted book balance a cell or a formula-based calculation is incorrect; no points deducted. *Red text indicates no response was expected
