Problem 6-5A (Algo) Preparing a bank reconciliation and recording entries 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, Number 5888 for $1,035 and Number 5893 for $486. 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				$ 20,000
September 3	Check #5888	$ 1,035		$ 18,965
September 4	Check #5902	$ 790		$ 18,175
September 5	Cash deposit		$ 1,167	$ 19,342
September 7	Check #5901	$ 1,837		$ 17,505
September 12	Cash deposit		$ 2,281	$ 19,786
September 17	NSF check	$ 666		$ 19,120
September 20	Check #5905	$ 979		$ 18,141
September 21	Cash deposit		$ 4,327	$ 22,468
September 22	Check #5903	$ 414		$ 22,054
September 22	Check #5904	$ 2,148		$ 19,906
September 25	Cash deposit		$ 2,373	$ 22,279
September 28	Check #5907	$ 242		$ 22,037
September 29	Check #5909	$ 1,886		$ 20,151
September 30	Collected note		$ 1,550	$ 21,701
September 30	Interest earned		$ 16	$ 21,717

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date	Cash Debit
September 5	1,167
September 12	2,281
September 21	4,327
September 25	2,373
September 30	1,727
	11,875

Cash Payments
Check Number	Cash Credit
5901	1,837
5902	790
5903	414
5904	2,110
5905	979
5906	953
5907	242
5908	441
5909	1,886
	9,652

Cash	Account Number 101
Date	Explanation	PR	Debit	Credit	Balance
August 31	Balance				18,479
September 30	Total receipts	R12	11,875		30,354
September 30	Total payments	D23		9,652	20,702

Additional Information

(a) Check Number 5904 is correctly drawn for $2,148 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 $2,110.

(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 collection of the note on September 30 is not yet recorded by the company.

Problem 6-5A (Algo) Part 1

Required:

1. Prepare the September 30 bank reconciliation for this company.