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 $1,024 and No. 5893 for $509. 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 9,914 TOTAL DEPOSITS AND CREDITS 11,694 CURRENT BALANCE 19,280 CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Tumount Date Amount 09/03 5888 1,024 09/05 1,152 09/04 5902 704 09/12 2,286 09/07 5901 1,868 09/21 4,224 09/17 694 NSF 09/25 2,358 09/205905 913 09/ 09/22 5903 430 09/30 1,650 CM 09/22 5904 2,119 09/29 5907 272 09/29 5909 1,890 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,152 12 2,286 21 4,224 25 2,358 30 1,674 11,694 Cash Payments Cheek Cash No. Credit 5901 1,868 5902 704 5903 430 5904 2,079 5905 913 5906 983 5907 272 5908 423 5909 1,990 9,562 Nect. No. 101 Credit Balance 15,967 Cash Date Explanation PR Debit Aug. Balance 31 Sept. 30 Total receipts R12 11,694 30 Total payments D23 27,661 18,099 9,562 Additional Information (a) Check No. 5904 is correctly drawn for $2,119 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 $2.079. (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 8-5A Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add: Bank statement balance Add: 0 0 0 0 Deduct: Deduct: 0 0 Adjusted bank balance S 0 Adjusted book balance $