Problem 6-5A (Algo) Preparing a bank reconciliation and recording adjustments LO P3

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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 $487. 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
19,500	9,848	11,439	21,091

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,021			09/05	1,135
09/04	5902	723			09/12	2,287
09/07	5901	1,804			09/21	4,111
09/17		696	NSF		09/25	2,328
09/20	5905	962			09/30	18	IN
09/22	5903	415			09/30	1,560	CM
09/22	5904	2,142
09/28	5907	211
09/29	5909	1,874

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,135
	12		2,287
	21		4,111
	25		2,328
	30		1,753
			11,614

Cash Payments
Check No.		Cash Credit
5901			1,804
5902			723
5903			415
5904			2,098
5905			962
5906			956
5907			211
5908			357
5909			1,874
			9,400

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				17,992
Sept. 30	Total receipts	R12	11,614		29,606
30	Total payments	D23		9,400	20,206

Additional Information

1. (a) Check No. 5904 is correctly drawn for $2,142 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 $2,098.
2. (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.
3. (c) The credit memorandum (CM) is from the collection of a $1,560 note for Chavez Company by the bank. The collection is not yet recorded.

2. Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits. Date General Journal Debit Credit Sept 30 Record entry Clear entry View general journal