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, Number 5888 for $1,038 and Number 5893 for $495. Check Number 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 9,845 TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 11,582 20,237 CHECKS AND DEBITS DEPOSITS AND CREDITS Date Number 09/03 5888 Amount 1,038 Date Amount 09/05 1,127 09/04 5902 732 09/12 2,263 09/07 5901 1,817 09/21 4,294 09/17 NSF 09/25 2,382 09/20 5905 990 09/30 IN 09/22 5903 440 09/30 1,500 CM 09/22 5904 2,068 09/28 5907 218 09/29 5909 1,865 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Debit September 5 1,127 September 12 2,263 September 21 4,294 September 25 2,382 September 30 1,788 11,854 Cash Payments Check Number Cash Credit 5901 1,817 5902 5903 732 440 5904 5905 2,026 990 5906 1,006 5907 5908 5909 218 447 1,865 9,541 Cash Account Number 101 Date Explanation PR Debit Credit Balance August 31 Balance 16,967 September 30 September 30 Total receipts R12 11,854 Total payments D23 9,541 28,821 19,280 Additional Information (a) Check Number 5904 is correctly drawn for $2,068 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 $2,026. (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 $1,500 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. Note: 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 23 4 5 Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits. Date September 30 General Journal Debit Credit Record entry Clear entry View general journal