problem 6-5A

Required information 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 $1,012 and No. 5893 for $485. 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 17,500 TOTAL CHECKS AND DEBITS 10,003 TOTAL DEPOSITS AND CREDITS 11,475 CURRENT BALANCE 18,972 CHECKS AND DEBITS Date No. Naount 09/03 5888 1,012 09/04 5902 760 09/07 5901 1,898 09/17 659 BP 09/20 5905 992 09/22 5903 397 09/22 5904 2,112 09/28 5902 246 09/29 5909 1,897 DEPOSITS AND CREDITS Date Amount 09/05 1,156 09/12 2,232 09/21 4,061 09/25 2,327 09/30 19 IN 09/30 1,680 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,156 Date Sept. 5 12 21 25 30 Cash Debit 1,156 2,232 4,061 2,327 1,760 11,536 Cash Payments Cash Check No. Credit 5901 1,898 5902 760 5903 397 5904 2,074 5905 992 5906 1,042 5907 246 5908 402 5909 1,897 9,708 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Credit Balance 16,003 27,539 9,708 17,831 11,536 R12 D23 Additional Information (a) Check No. 5904 is correctly drawn for $2,112 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 $2,074. (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 $1,680 note for Chavez Company by the bank. The collection is not yet recorded. 1. Prepare the September 30 bank reconciliation for this company, CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Bank statement balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance