Required 1 & 2

company most recently reconciled its bank statement and book balances of cash on August 31 and reported to checks outstanding. No. 5888 for $1.028 and No. 5893 for $494. Check No. 5893 was still standing as of September 20. The following information is available for its September 30 reconciliation Problem 8-5A Preparing a bank reconciliation and recording adjustments From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEDITS 9612 TOTAL DEPOSITS AND CREDITS 11270 CURRENT BALANCE 18.453 CHECKS AND DEBITS Date Amount Sep 3 5888 1028 Sep. 4 5902 719 Sep 7 5901 1,824 600 NSF Sep. 20 5905 937 Sep. 22 Sep. 22 5904 2,090 Sep. 285907 213 Sep. 295909 1,807 DEPOSITS AND CREDITS Date Amount Sep. 5 1,103 Sep. 12 2.226 Sep. 21 4,093 Sep. 25 2.351 Sep 30 12 IN 1,485 CM Sep. 17 5903 399 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit Cash Payments Check No. Cash Credit Sep 5 1,824 719 1.103 2,226 4,093 2,351 1.682 11,455 399 5901 5902 5903 5904 5905 5906 5907 5908 5909 2,060 937 982 213 Acct. No. 101 Date Explanation PR Debit Credit Balance 388 1.807 31 Aug Sep. 30 Balance Total receipts Total payments R12 11.455 15.278 26,733 9,32917,404 9,329 Additional Information (a) Check No. 5904 is correctly drawn for $2.090 to pay for computer equip. ment; 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 $2,060. (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 $1.485 note for Chavez Company by the bank. The collection is not yet recorded. Required 1. Prepare the September 30 bank reconciliation for this company. 2. Prepare journal entries to adjust the book balance of cash to the reconciled balance. Check (1) Reconciled balance. $18.271:2) Notes Receivable, $1.489