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 $1,093 and No. 5893 for $501. 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 18,000 TOTAL CHECKS AND DEBITS 10,035 TOTAL DEPOSITS AND CREDITS 11,857 CURRENT BALANCE 19,822 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,093 09/04 5902 790 09/07 5901 1,884 09/17 692 NSF 09/20 5905 947 09/22 5903 388 09/22 5904 2,146 09/28 5907 212 09/29 5909 1,883 DEPOSITS AND CREDITS Date Amount 09/05 1,190 09/12 2,231 09/21 4,407 09/25 2,355 09/30 14 IN 09/30 1,660 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,190 12 2,231 21 4,407 25 2,355 30 1,757 11,940 Cash Receipts Deposited Cash Date Debit Sept. 5 1,190 12 2,231 21 4,407 25 2,355 30 1,757 11,940 Cash Payments Cash Check No. Credit 5901 1,884 5902 790 5903 388 5904 2,102 5905 947 5906 981 5907 212 5908 354 5909 1,883 9,541 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Credit Balance 16,406 28,346 9,541 18,805 R12 D23 11,940 Additional Information (a) Check No. 5904 is correctly drawn for $2,146 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 $2,102. Additional Information (a) Check No. 5904 is correctly drawn for $2,146 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 $2,102. (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 $1,660 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 Book balance Add: Bank statement balance Add: Deduct: Deduct: 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 1 2 3 4 5 6 Record the entry related to the September 30 deposit, if required. 1 2 3 4 5 6 Record the entry related to interest earned, if required.
