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 $1,031 and No. 5893 for $487. The following information is available for its September 30, 2017, reconciliation. From the September 30 Bank Statement TOTAL CHECKS AND DEBITS 9,899 TOTAL DEPOSITS AND CREDITS 11,367 PREVIOUS BALANCE CURRENT BALANCE 20,468 19,000 CHECKS AND DEBITS DEPOSITS AND CREDITS Ar 1 118 09/05 09/12 09/03 5888 1,031 771 1. 5902 09/04 2,246 5901 09/25 2:308 09/17 662NSF 09/20 09/22 5903 5905 915 09/30 09/30 22IN 1,495CM 42 2, 265 09/28 5907 09/29 5909 1,884 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. .. 2,246 4,178 2,308 1,750 21 25 30 11,600 Cash Disbursements Cash Credit Check No 271 5903 427 5904 ,034 5906 .017 5907 265 5909 ..884 Cash Receipts Deposited Cash Date Debit Sept 18 2,246 4,178 21 1,750 30 11,600 Cash Disbursements Check No. 5901 1,867 771 5902 5904 5905 2,034 915 1. 5907 5908 5909 369 1,884 9,549 Cash Explanation 31 Balance Acct. No. 101 Debit Credit Date PR Balance 17,482 Aug. 11,600 Sept 30 Total dishursements R1 19.533 p23 9,549 Additional Information Check No. 5904 is correctly drawn for $2,077 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 NSF check shown has not yet been recorded by the company. The credit memorandum is from the collection of a $1,510 note for Chavez Company by the bank. The bank deducted a $15 collection fee. The collection and fee are not yet recorded. credit to Cash of $2,034. The the statement was originally received from a customer, S. Nilson, in payment of her account. Its return Additional Information Check No. 5904 is correctly drawn for $2,077 to pay for computer equipment; however, the recordkeeper misread the Computer Equipment and a credit to Cash of $2,034. The turn has not vet been recorded by the company The credit memorandum is from the collection of a $1.510 note for Chave7 amount and entered it in the accounting records with a debit Company by the bank. The bank deducted a $15 collection fee. The collection and fee are not yet recorded. Problem 8-5A Part 1 Required: 1. Prepare the September 30, 2017, bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30, 2017 Book balance Bank statement balance Add: Add 0 Deduct Deduct 0 S Adjusted bank balance 0 Adjusted book balance S