Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $1,047 and No. 5893 for $511. 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 9,832 TOTAL DEPOSITS AND CREDITS 11,890 CURRENT BALANCE 19,058 TE DEPOSITS AND CHECKS AND DEBITS CREDITS Date No. Amount Date Amount 09/03 5888 1,047 09/05 1,156 09/04 5902 740 09/12 2,281 09/075901 1,830 09/21 4,418 09/17 685NSF 09/25 2,342 09/20 5905 957 09/30 13 IN 09/22 5903 379 09/30 1,680 CM 09/22 5904 2,073 09/28 5907231 09/295909 1,890 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,156 2,281 4,418 25 2,342 1,786 11,983 740 Cash Payments Check Cash No. Credit 5901 1,830 5902 5903 379 5904 2,035 5905 5906 1,045 5907 231 590B 5909 1.890 9,501 957 Aug. Balance Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 15,442 30 Total receipts R12 11,983 27,425 30 Total payments D23 9,501 17,924 Additional Information a) Check No. 5904 is correctly drawn for $2,073 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 $2,035. (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 2 2. Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits. Date General Journal Sept 30 Debit Credit Record entry View general Journal Clear entry

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Cost Accounting A Managerial Emphasis

Authors: Srikant M. Datar, Madhav V. Rajan

16th edition

134475585, 978-0134475998, 134475992, 978-0134475585

Students also viewed these Accounting questions