Problem 8-5A Preparing a bank reconciliation and recording adjustments LO P3

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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 $1,063 and No. 5893 for $495. 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
19,000	9,843	11,604	20,761

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,063			09/05	1,104
09/04	5902	735			09/12	2,225
09/07	5901	1,824			09/21	4,350
09/17		653	NSF		09/25	2,312
09/20	5905	932			09/30	13	IN
09/22	5903	431			09/30	1,600	CM
09/22	5904	2,110
09/28	5907	225
09/29	5909	1,870

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,104
	12		2,225
	21		4,350
	25		2,312
	30		1,794
			11,785

Cash Disbursements
Check No.		Cash Credit
5901			1,824
5902			735
5903			431
5904			2,069
5905			932
5906			994
5907			225
5908			410
5909			1,870
			9,490

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				17,442
Sept. 30	Total receipts	R12	11,785		29,227
30	Total disbursements	D23		9,490	19,737

Additional Information Check No. 5904 is correctly drawn for $2,110 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 $2,069. 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 $1,620 note for Chavez Company by the bank. The bank deducted a $20 collection fee. The collection and fee are not yet recorded.