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 $1,006 and No. 5893 for $515. 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 18,500 TOTAL CHECKS AND DEBITS 9,894 TOTAL DEPOSITS AND CREDITS 11,865 CURRENT BALANCE 20,471 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,006 09/04 5902 730 09/07 5901 1,883 09/17 641 NSP 09/20 5905 941 09/22 5903 448 09/22 5904 2,092 09/28 5907 266 09/29 5909 1,887 DEPOSITS AND CREDITS Date Amount 09/05 1,152 09/12 2,230 09/21 4,468 09/25 2,394 09/30 21 IN 09/30 1,600 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,152 12 2,230 21 4,468 25 2,394 30 1,724 11,968 = Cash Payments Cash Check No. Credit 5901 1,883 5902 730 5903 448 5904 2,055 5905 941 5906 974 5907 266 5908 405 5909 1,887 9,589 Acct. No. 10 PR Debit Credit Balance Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments R12 D23 11,968 16,979 28,947 19, 358 9,589 Additional Information (a) Check No. 5904 is correctly drawn for $2,092 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 $2,055. (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 $1,600 note for Chavez Company by the bank. The collection is not yet recorded. Problem 6-5A (Algo) Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30 Bank statement balance Book balance Add: Add: 0 0 0 Deduct: Deduct: 0 0 Adjusted bank balance $ 0 Adjusted book balance $ 0 Problem 6-5A (Algo) Part 2 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 Journal entry worksheet