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 $1,052 and No. 5893 for $504. 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 18,500 TOTAL CHECKS AND DEBITS 9,724 TOTAL DEPOSITS AND CREDITS 11,633 CURRENT BALANCE 20,409 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,052 09/04 5902 706 09/07 5901 1,828 09/17 640 NSF 09/20 5905 09/22 5903 09/22 5904 2,068 09/28 5907 248 09/29 5909 1,882 DEPOSITS AND CREDITS Date Amount 09/05 1,168 09/12 2,231 09/21 4,317 09/25 2, 343 09/30 24 IN 09/30 1,550 CM 906 394 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,168 12 2,231 21 4, 317 25 2, 343 30 1,685 11, 744 Cash Payments Cash Check No. Credit 5901 1,828 5902 706 5903 394 5904 2,026 5905 906 5906 1,003 5907 248 5908 414 5909 1,882 9,407 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 16,944 28,688 19, 281 11,744 R12 D23 9,407 Additional Information (a) Check No. 5904 is correctly drawn for $2,068 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 $2,026. (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 $1,550 note for Chavez Company by the bank. The collection is not yet recorded. Required: 1. Prepare the September 30 bank reconciliation for this company. 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 View transaction list 1 > Record the entry related to the September 30 deposit, if required. 2 Record the entry related to interest earned, if required. 3 Record the entry related to the note receivable and the collection, if required. 4 Record the entry related to the outstanding checks, if required. Credit 5 Record the entry related to the NSF check, if required. 6 Record the entry related to the error on check 5904, if required. Note : journal entry has been entered Record entry Clear entry View general journal Required: 1. Prepare the September 30 bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Bank statement balance Add: Add: 0 0 0 0 Deduct: Deduct: 0 Adjusted bank balance $ 0 Adjusted book balance $ 0