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 $1,040 and No. 5893 for $487. The following information is available for its September 30, 2017, reconciliation.

From the September 30 Bank Statement

PREVIOUS BALANCE	TOTAL CHECKS AND DEBITS	TOTAL DEPOSITS AND CREDITS	CURRENT BALANCE
20,000	9,903	11,398	21,495

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,040			09/05	1,125
09/04	5902	794			09/12	2,243
09/07	5901	1,840			09/21	4,164
09/17		636	NSF		09/25	2,302
09/20	5905	983			09/30	16	IN
09/22	5903	352			09/30	1,548	CM
09/22	5904	2,149
09/28	5907	248
09/29	5909	1,861

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,125
	12		2,243
	21		4,164
	25		2,302
	30		1,708
			11,542

Cash Disbursements
Check No.		Cash Credit
5901			1,840
5902			794
5903			352
5904			2,110
5905			983
5906			980
5907			248
5908			392
5909			1,861
			9,560

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				18,473
Sept. 30	Total receipts	R12	11,542		30,015
30	Total disbursements	D23		9,560	20,455

Additional Information Check No. 5904 is correctly drawn for $2,149 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. 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 $1,570 note for Chavez Company by the bank. The bank deducted a $22 collection fee. The collection and fee are not yet recorded.

1. Prepare the September 30, 2017, bank reconciliation for this company.

2. Prepare the 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.)