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 TOTAL CHECKS AND DEBITS 18,500 9,845 TOTAL DEPOSITS AND CREDITS 11,582 CURRENT BALANCE 20,237 Date CHECKS AND DEBITS Number 09/03 5888 1,038 DEPOSITS AND CREDITS Amount Date Amount 09/05 1,127 09/04 5902 732 09/12 2,263 09/07 5901 1,817 09/21 4,294 09/17 677 NSF 09/25 2,382 09/20 5905 990 09/30 16 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 Date Cash Debit September 5 1,127 September 12 2,263 September 21 4,294 September 25 2,382 September 30 1,788 11,854 Check Number Cash Payments Cash Credit 5901 1,817 5902 732 5903 440 5904 2,026 5905 990 5906 1,006 5907 5908 5909 218 447 1,865 9,541 Cash Account Number 101 Date August 31 Explanation PR Debit Credit Balance Balance 16,967 September 30 September 30 Total receipts R12 11,854 28,821 Total payments D23 9,541 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 1 Required: 1. Prepare the September 30 bank reconciliation for this company. Bank statement balance Add: Deduct CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add: 0 0 Deduct 0 0 0 Adjusted bank balance $ 0 Adjusted book balance $ 0