Required information

Problem 8-5A 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 $1,057 and No. 5893 for $512. 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	TOTAL CHECKS AND DEBITS	TOTAL DEPOSITS AND CREDITS	CURRENT BALANCE
20,000	9,886	11,537	21,651

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,057			09/05	1,164
09/04	5902	755			09/12	2,277
09/07	5901	1,809			09/21	4,150
09/17		698	NSF		09/25	2,321
09/20	5905	952			09/30	15	IN
09/22	5903	417			09/30	1,610	CM
09/22	5904	2,060
09/28	5907	268
09/29	5909	1,870

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,164
	12		2,277
	21		4,150
	25		2,321
	30		1,669
			11,581

Cash Payments
Check No.		Cash Credit
5901			1,809
5902			755
5903			417
5904			2,023
5905			952
5906			1,019
5907			268
5908			426
5909			1,870
			9,539

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				18,431
Sept. 30	Total receipts	R12	11,581		30,012
30	Total payments	D23		9,539	20,473

Additional Information

1. (a) Check No. 5904 is correctly drawn for $2,060 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 $2,023.
2. (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.
3. (c) The credit memorandum (CM) is from the collection of a $1,610 note for Chavez Company by the bank. The collection is not yet recorded.

Problem 8-5A Part 1

Required: 1. Prepare the September 30 bank reconciliation for this company.