! Required information (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 $1,019 and No. 5893 for $516. The following information is available for its September 30, 2017, reconciliation. From the September 30 Bank Statement PREVIOUS BALANCE 20,000 TOTAL CHECKS AND DEBITS 9,954 TOTAL DEPOSITS AND CREDITS 11, 324 CURRENT BALANCE 21,370 CHECKS AND DEBITS Date No. Amount 09/03 588B 1,019 09/04 5902 789 09/07 5901 1,893 09/17 637NSF 09/20 5905 968 09/22 5903 386 09/22 5904 2,147 09/28 5907 249 09/29 5909 1,866 DEPOSITS AND CREDITS Date Amount 09/05 1,106 09/12 2,242 09/21 4,098 09/25 09/30 13IN 09/30 1,560CM 2,305 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1, 106 12 2,242 21 4,098 25 2,305 30 1,790 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,106 12 2,242 21 4,098 25 2,305 30 1,790 11,541 Cash Disbursements Cash Check No. Credit 5901 1,893 5902 789 5903 386 5904 2,110 5905 968 5906 1,037 5907 249 5908 379 5909 1,866 9,677 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total disbursements Acct. No. 101 Credit Balance 18,465 30,006 9,677 20,329 11,541 R12 D23 Additional Information Check No. 5904 is correctly drawn for $2,147 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 $2,110. The NSF check shown in 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 $2,147 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 $2,110. 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. The credit memorandum is from the collection of a $1,580 note for Chavez Company by the bank. The bank deducted a $20 collection fee. The collection and fee are not yet recorded. Required: 1. Prepare the September 30, 2017, bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30, 2017 Book balance Add: Bank statement balance Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance
