Required information Problem 6-5A (Algo) 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 $1,029 and No. 5893 for $494. 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 18,000 TOTAL CHECKS AND DEBITS 9,667 TOTAL DEPOSITS AND CREDITS 11,456 CURRENT BALANCE 19,789 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,029 09/04 5902 730 09/07 5901 1,825 09/17 610 NSF 09/20 5905 910 09/22 5903 387 09/22 5904 2,106 09/28 5907 218 09/29 5909 1,852 DEPOSITS AND CREDITS Date Amount 09/05 1,133 09/12 2,242 09/21 4,137 09/25 2,317 09/30 17 IN 09/30 1,610 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,133 12 2,242 21 4,137 25 2,317 30 1,747 11,576 N N N P Cash Payments Cash Check No. Credit 5901 1,825 5902 730 5903 387 5904 2,064 5905 910 5906 984 5907 218 5908 433 5909 1,852 9,403 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Credit Balance 16,477 28,053 9,403 18,650 11,576 R12 D23 Additional Information (a) Check No. 5904 is correctly drawn for $2,106 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 $2,064. (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 $1,610 note for Chavez Company by the bank. The collection is not yet recorded. 2. Prepare 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.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Sept 30 No journal entry required 2 Sept 30 Cash short and over Interest earned 3 Sept 30 Cash short and over Notes receivable 4 Sept 30 No journal entry required 5 Sept 30 Accounts receivableS.Nilson Cash 6 Sept 30 Computer equipment Cash