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 $1,032 and No. 5893 for $482. 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 20,000 TOTAL CHECKS AND DEBITS 9,851 TOTAL DEPOSITS AND CREDITS 11,807 CURRENT BALANCE 21,956 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,032 09/04 5902 765 09/07 5901 1,860 09/17 682 NSF 09/20 5905 919 09/22 403 09/22 5994 2,100 09/28 5907 234 09/29 5909 1,856 DEPOSITS AND CREDITS Date Amount 09/05 1,202 09/12 2,260 09/21 4,367 09/25 2,357 09/30 21 IN 09/30 1,600 CM 5923 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,202 12 2,260 21 4,367 25 2,357 30 1,789 11,975 Cash Payments Cash Check No. Credit 5901 1,860 5902 765 5903 403 5994 2,060 5905 919 5906 966 5907 234 5908 380 5909 1,856 S PR Debit Credit 1 1 Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 18,486 30,461 21,018 11,975 R12 D23 9,443 Part 1 of 2 Additional Information (a) Check No. 5904 is correctly drawn for $2,100 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 $2,060. (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 $1,600 note for Chavez Company by the bank. The collection is not yet recorded. Required: 1. Prepare the September 30 bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30 11,975 Book balance Add: $ Bank statement balance Add: 0 0 11.975 0 Deduct Deduct: 0 Adjusted bank balance S 11,975 Adjusted book balance S 0 View transaction list Journal entry worksheet Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits. General Journal Debit Credit Date Sept 30 Record entry Clear entry View general journal Additional Information 2 (a) Check No. 5904 is correctly drawn for $2,100 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 $2,060. (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 $1,600 note for Chavez Company by the bank. The collection Is not yet recorded. Part 2 of 2 Skipped 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 Record the entry related to interest earned, if required. Note: Enter debits before credits. Date General Journal Debit Credit Sept 30 Record entry Clear entry View general journal Mc Graw Prey 2 of 2 Next Additional Information (a) Check No. 5904 is correctly drawn for $2,100 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 $2,060. (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 $1,600 note for Chavez Company by the bank. The collection is not yet recorded. 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 Record the entry related to the note receivable and the collection, if required. Note: Enter debits before credits. General Journal Debit Credit Date Sept 30 Record entry Clear entry View general journal Pro F 10 2 Moyt Additional Information (a) Check No. 5904 is correctly drawn for $2,100 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 $2,060. (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 $1,600 note for Chavez Company by the bank. The collection Is not yet recorded. 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 Additional Information 2 (a) Check No. 5904 is correctly drawn for $2,100 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 $2,060. (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 $1,600 note for Chavez Company by the bank. The collection is not yet recorded Part 2 of 2 Skipped 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 Record the entry related to the NSF check, if required. Note: Enter debits before credits. Date General Journal Debit Credit Sept 30 Record entry Clear entry View general journal Additional Information (a) Check No. 5904 is correctly drawn for $2,100 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 $2,060. (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 $1,600 note for Chavez Company by the bank. The collection Is not yet recorded 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