Required information Problem 6-5A 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 $1,049 and No. 5893 for $480. 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 17,000 TOTAL CHECKS AND DEBITS 9,764 TOTAL DEPOSITS AND CREDITS 11,687 CURRENT BALANCE 18,923 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,049 09/04 5902 782 09/07 5901 1,820 09/17 630 NSF 09/20 5905 931 09/22 5903 354 09/22 5904 2,107 09/28 5907 222 09/29 5909 1,869 DEPOSITS AND CREDITS Date Amount 09/05 1,162 09/12 2,231 09/21 4,257 09/25 2,338 09/30 19 IN 09/30 1,680 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,162 12 2,231 21 4,257 25 2,338 30 1,707 11,695 HNNM Cash Payments Cash Check No. Credit 5901 1,820 5902 782 5903 354 5904 2,067 5905 931 5906 1,018 5907 222 5908 424 5909 1,869 9,487 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Credit Balance 15, 471 27,166 9,487 17,679 R12 D23 11,695 Additional Information (a) Check No. 5904 is correctly drawn for $2,107 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 $2,067. (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 $1,680 note for Chavez Company by the bank. The collection is not yet recorded. Problem 6-5A Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add: Bank statement balance Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance