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 $1,091 and No. 5893 for $504. 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 TOTAL CHECKS AND DEBITS 19,000 9,843 TOTAL DEPOSITS AND CREDITS 11,701 CURRENT BALANCE 20,858 CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount Date Amount 09/03 5888 1,091 09/05 1,198 09/04 5902 723 09/12 2,258 09/07 5901 1,844 09/21 4,383 09/17 09/20 636 NSF 09/25 2,319 5905 989 09/30 13 IN 09/22 5903 369 09/30 1,530 CM 09/22 5904 2,058 09/28 5907 09/29 5909 236 1,897 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date: Debit Sept. 5 1,198 12 2,258 21 4,383 25 2,319 30 1,720 11,878 Cash Payments Cash Check No. Credit 5901 1,844 5902 723 5903 369 5904 2,020 5905 989 5 Required information art 1 of 2 nts 12 2,258 21 4,383 25 2,319 30 1,720 11,878 Cash Payments Cash 02:12:38 Check No. Credit 5901 1,844 5902 723 5903 369 5904 2,020 5905 989 eBook 5906 1,003 5907 236 5908 414 5909 1,897 Print 9,495 References Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Aug. 31 Balance 17,405 Sept. 30 Total receipts R12 11,878 30 Total payments 29,283 D23 9,495 19,788 Additional Information (a) Check No. 5904 is correctly drawn for $2,058 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 $2,020. (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 $1,530 note for Chavez Company by the bank. The collection is not yet recorded. Che Booki Print erences Mc Problem 6-5A (Algo) Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company. Bank statement balance Add: Deposit of Sept. 30 CHAVEZ COMPANY Bank Reconciliation i September 30 Book balance Add: Deduct 0 Deduct 0 0 Adjusted bank balance $ 0 Adjusted book balance $ 0 0 0 (a) Check No. 5904 is correctly drawn for $2,058 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 $2,020. (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 $1,530 note for Chavez Company by the bank. The collection is not yet recorded.. 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 1 2 3 4 5 6 Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits. Date Sept 30 General Journal Debit Credit Record entry Clear entry View general journal