Required Information Problem 6-5A (Algo) Preparing a bank reconciliation and recording entries 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 $1,069 and Number 5893 for $514. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation. Date September 1 September 3 Description Withdrawals Deposits Balance $ 17,500 September 4 Check #5888 Check #5902 $ 1,069 $ 16,431 $ 718 $ 15,713 September 5 September 7 September 12 September 17 September 20 September 21 September 22 September 22 September 25 September 28 September 29 September 30 September 30 Check #5905 Cash deposit Check #5903 Check #5904 Cash deposit Check #5907 Check #5909 From Chavez Company's Accounting Records Cash Receipts Deposited Cash deposit $ 1,173 $ 16,886 Check #5901 Cash deposit NSF check $ 1,870 $ 15,016 $ 2,289 $ 17,305 $ 689 $ 16,616 $ 907 $ 15,709 $ 4,481 $ 20,190 $ 449 $ 19,741 $ 2,054 $ 17,687 $ 2,314 $ 20,001 $ 210 $ 19,791 $ 1,863 $ 17,928 Collected note Interest earned $ 1,500 $ 22 $ 19,428 $ 19,450 Date Cash Debit September 5 1,173 September 12 2,289 September 21 4,481 September 25 2,314 September 30 1,780 12,037 Cash Payments Check Number Cash Credit 5901 1,870 5902 718 5903 449 5904 2,014 5905 907 5906 999 5907 210 5908 434 5909 1,863 9,464 Cash Date Explanation PR Debit Account Number 101 Credit Balance August 31 Balance 15,917 September 30 September 30 Total receipts R12 12,037 27,954 Total payments D23 9,464 18,490 Additional Information (a) Check Number 5904 is correctly drawn for $2,054 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 $2,014. (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 collection of the note on September 30 is not yet recorded by the company.