CURVING LIVI Problem 6-5A 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 $1,095 and No. 5893 for $506. The following information is available for its September 30, 2017, reconciliation From the September 30 Bank Statement PREVIOUS BALANCE 19,800 TOTAL CHECKS AND DEBITS 9,981 TOTAL DEPOSITS AND CREDITS 11,605 CURRENT BALANCE 20,624 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,095 09/04 5982 784 09/07 5901 1,875 09/17 689NSE 09/20 5985 984 e9/22 5903 409 09/22 5984 2,061 09/28 5907 266 09/29 5909 1,898 DEPOSITS AND CREDITS Date Amount 09/05 1,188 09/12 2,290 09/21 4,154 09/25 2,366 09/30 17IN 09/30 1,590CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,188 2,290 4,154 2,366 30 1,656 11,654 A A A of 2 Cash Disbursements Cash Check No. Credit 5901 1,875 5902 704 5903 409 5904 2,022 5905 984 5906 5907 5908 445 5999 1,898 9,591 988 266 bed PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total disbursements Acct. No. 101 Balance 17,399 29,053 19,462 R12 11,654 9,591 Additional Information Check No. 5904 is correctly drawn for $2,061 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 $2,022. 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 $1.610 note for Chavez Company by the bank. The bank deducted a $20 collection fee. The collection and fee are not yet recorded Problem 6-5A Part 1 Required: 1. Prepare the September 30, 2017, bank reconciliation for this company