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 $1,003 and No. 5893 for $489. 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 TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS 11,587 PREVIOUS BALANCE 19,500 9,825 CURRENT BALANCE 21, 262 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,003 09/04 5902 720 09/07 5901 1,856 09/17 659 NSF 09/20 5905 957 09/22 5903 387 09/22 5904 2,126 09/28 5907 228 09/29 5909 1,889 DEPOSITS AND CREDITS Date Amount 09/05 1,148 09/12 2,226 09/21 4,307 09/25 2, 303 09/30 13 IN 09/30 1,590 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,148 12 2,226 21 4,307 25 2, 303 30 1,655 11,639 Cash Payments Cash Check No. Credit 5901 1,856 5902 720 5903 387 5904 2,089 5905 957 5906 1,016 5907 228 5908 386 5909 1,889 9,528 Additional Information (a) Check No. 5904 is correctly drawn for $2,126 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 $2,089. (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 $1,590 note for Chavez Company by the bank. The collection is not yet recorded. es CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Bank statement balance Add: Add: 0 0 0 0 Deduct: Deduct: 0 0 Adjusted bank balance $ 0 Adjusted book balance $ 0