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 $1,022 and No. 5893 for $503. 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 17,000 TOTAL CHECKS AND DEBITS 9,941 TOTAL DEPOSITS AND CREDITS 11,621 CURRENT BALANCE 18,680 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,022 09/04 5902 793 09/07 5901 1,864 09/17 641 NSF 09/20 5905 934 09/22 5903 431 09/22 5904 2,138 09/28 5907 221 09/29 5909 1,897 DEPOSITS AND CREDITS Date Amount 09/05 1,134 09/12 2,247 09/21 4,254 09/25 2,321 09/30 15 IN 09/30 1,650 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,134 2,247 11,741 Cash Payments Cash Cash Payments Cash Check No. Credit 5901 1,864 5902 793 5903 431 5904 2,098 5905 5906 1,002 5907 221 5908 435 5909 1,897 9,675 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 15,475 27,216 17,541 R12 D23 11,741 9,675 Additional Information (a) Check No. 5904 is correctly drawn for $2,138 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. (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 $1,650 note for Chavez Company by the bank. The collection is not yet recorded. Problem 6-5A Part 2 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 View journal entry worksheet