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 $1.034 and No 5893 for $496. 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 9,919 TOTAL DEPOSITS AND CREDITS 11,316 CURRENT BALANCE 20,897 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,034 09/04 5902 768 09/07 5901 1.839 09/17 626 NSF 09/20 5905 999 09/22 5903 09/22 5964 2,108 09/28 5907 245 09/29 5909 1,890 DEPOSITS AND CREDITS Date Amount 09/05 1,132 09/12 2,221 09/21 4,034 09/25 2,367 09/30 22 IN 09/30 1,540 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1.132 2,221 2,367 1,679 11,433 Cash Payments 768 Cash Payments Cash Check No. Credit 5901 1,839 5902 5903 410 5904 2.067 5905 999 5906 1,03 5907 245 5908 423 5909 1,890 9.671 Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Debit 11,433 Acct. No. 101 Balance 17,970 29,603 19,732 R12 D23 9,671 Additional Information (a) Check No. 5904 is correctly drawn for $2.108 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 $1,540 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 Bank statement balance Add Deduct Deduct Adjusted bank balance Adjusted book balance