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 $1,020 and Number 5893 for $513. 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 September 4 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 Description Check #5888 Check #5902 Cash deposit Check # 5901 Withdrawals Deposits Balance $ 17,000 $ 1,020 $ 15,980 $ 799 $ 15,181 $ 1,188 $ 16,369 $ 1,860 $ 14,509 Cash deposit NSF check Check #5905 Cash deposit Check #5903 Check #5904 Cash deposit Check # 5907 Check #5909 Collected note $ 2,272 $ 16,781 $ 652 $ 16,129 $ 922 $ 15,207 $ 4,173 $ 19,380 $ 409 $ 18,971 $ 2,141 $ 16,830 $ 2,352 $ 19,182 $ 218 $ 18,964 $ 1,891 $ 17,073 Interest earned $ 1,520 $ 17 $ 18,593 $ 18,610 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,188 September 12 2,272 September 21 4,173 September 25 2,352 September 30 1,675 11,660 Check Number Cash Payments Cash Credit 5901 1,860 5902 799 5903 409 5904 2,101 5905 922 5906 969 5907 218 5908 402 5909 1,891 9,571 Cash Date August 31 Explanation PR Debit Account Number 101 Credit Balance Balance 15,467 September 30 Total receipts R12 11,660 27,127 September 30 Total payments D23 9,571 17,556 Additional Information (a) Check Number 5904 is correctly drawn for $2,141 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 $2,101. (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.