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 $1,012 and No. 5893 for $493. 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 19,500 TOTAL CHECKS AND DEBITS 9,893 TOTAL DEPOSITS AND CREDITS 11,602 CURRENT BALANCE 21,209 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,012 09/04 5902 787 09/07 5901 1,891 09/17 609 NSF 09/20 5905 904 09/22 5903 448 09/22 5904 2,104 09/28 5907 240 09/29 5909 1,898 DEPOSITS AND CREDITS Date Amount 09/05 1,176 09/12 2,276 09/21 4,084 09/25 2,356 09/30 20 IN 09/30 1,690 CM From Chavez Company's Accounting Records 1,176 Cash Receipts Deposited Cash Date Debit Sept. 5 12 2,276 21 4,084 25 2,356 30 1,754 11,646 11,646 = 5901 Cash Payments Cash Check No. Credit 1,891 5902 787 5903 448 5904 2,068 5905 904 5906 1,013 5907 240 5908 442 5909 1,898 9,691 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 17,995 29,641 19,950 R12 D23 11,646 9,691 Additional Information (a) Check No. 5904 is correctly drawn for $2,104 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 $2,068. (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 $1,690 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. amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,068. (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 $1,690 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. CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Bank statement balance Add: Deposit of Sept. 30 Add: 0 0 0 0 Deduct: Deduct: 0 0 Adjusted bank balance $ 0 Adjusted book balance 0