Problem 8-5A 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 $1,019 and No. 5893 for $496. The following information is available for its September 30, 2017, reconciliation From the September 30 Bank Statement PREVIOUS BALANCE 18,500 TOTAL CHECKS AND DEBITS 9.929 TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 20,099 1,528 CHECKS AND DEBITS Date No. Mount 09/03 5888 1,019 09/04 5902 743 09/07 5901 1,835 09/17 695NSF 09/20 5905 965 09/22 5903 429 09/22 5904 2.118 09/28 5907 09/29 5909 DEPOSITS AND CREDITS Date Amount 09/05 1.200 09/12 2,253 09/21 4.103 09/25 2.346 09/30 18IN 09/30 1.60SCM From Chavez Company's Accounting Records Cash Receipts Deposited Date Sept. 5 12 21 Debit 1,200 2,253 4,103 2.346 1.232 11,634 Cash Disbursements Cash Cheek No. Credit 5901 1.835 5902 743 5903 5904 2.077 5905 965 5906 986 5907 237 5908 389 5909 1.888 9,549 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total disbursements Acet. No. 101 Balance 16.95 28.619 19.070 R12 D23 11,634 9,549 Additional Information Check No. 5904 is correctly drawn for $2,118 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 $2,077. 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. The credit memorandum is from the collection of a $1,630 note for Chavez Company by the bank. The bank deducted a $22 collection fee. The collection and fee are not yet recorded. Required: 1. Prepare the September 30, 2017, bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30, 2017 Book balance Add: Bank statement balance Add: Deduct: Deduct Adjusted bank balance Adjusted book balance