Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please, don't cut off some of the answers. Also, this is going to be the second time I am posting this question. The first answers

Please, don't cut off some of the answers. Also, this is going to be the second time I am posting this question. The first answers I got here were not entirely correct.
Thanks.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 8-5A (Algo) Preparing a bank reconciliation and recording entries 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, Number 5888 for $1,063 and Number 5893 for $494. 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 $ 19,500 September Check 5888 $ 1,063 $ 18,437 September 4 Check 5902 $703 517,234 September 5 Cash deposit $ 1,165 $18,899 September 7 Check *5901 $1,822 $ 17,077 September 12 Cash deposit $ 2,238 $ 19,315 September 17 NSF check $ 616 $ 18,699 September 20 Check #5985 5.98 $ 17,716 September 21 Cash deposit 54,111 5.21,827 September 22 Check #5903 $ 432 $ 21,95 September 22 Check 594 $ 2,091 $ 19,304 September 25 Cash deposit $.2,148 $ 21,652 September 28 Check #5907 $ 21,375 September 29 Check #5003 $ 1,854 $ 19,491 September 30 Collected note $ 1.620 $ 21,111 $ 21 September 30 Interest earned $ 21,132 $ 272 From Chavez Company's Accounting Records Cash Receipt Deposited Dat Cash Debit September 1,165 September 12 2.238 September 21 4,111 September 25 2. September 1.735 11.592 Cash Payments Check Number Cash Credit 5901 1,822 5902 703 5963 5904 2,050 5905 983 5906 1,025 5907 222 5908 426 5909 1,884 9,602 PR Debit Cash Date Explanation August 31 Balance September 30 Total receipts September 30 Total payments Account Number 101 Credit Balance 17,943 29,560 9,602 19.938 11,597 R12 023 Additional Information (a) Check Number 5904 is correctly drawn for $2.091 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 $2050. (6) The NSF check shown in the statement was originally received from a customer, 5 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. Required information Required: 1. Prepare the September 30 bank reconciliation for this company Bank statement balance Add CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add 0 0 0 Deduct 0 Deduct Adjusted bank balance 0 Adjusted book balance 0 $ $ 0 - Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a Fansaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 September 30 No journal entry required > 2 September 30 Cash 15 X Interest earned > > 15 3 September 30 Cash 1,670 Notes receivable >IS 1,670 4 Septomber 30 No journal entry required > 5 September 30 Accounts receivable-S Nilson Cash 087% O 687 6 September 30 Computer equipment Cash > 373 37%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Government And Not For Profit Accounting

Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch

6th Edition

0132366355, 978-0132366359

More Books

Students also viewed these Accounting questions

Question

2. Speak in a firm but nonthreatening voice.

Answered: 1 week ago

Question

How were the HR functions affected by Hurricane Rita?

Answered: 1 week ago

Question

What information might lead you to choose working for the company?

Answered: 1 week ago

Question

Which environment factor(s) did Hurricane Rita affect? Discuss.

Answered: 1 week ago