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 $1,013 and No. 5893 for $500. 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 9,840 11,713 21,873

CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount Date Amount 09/03 5888 1,013 09/05 1,139 09/04 5902 761 09/12 2,257 09/07 5901 1,852 09/21 4,371 09/17 604 NSF 09/25 2,344 09/20 5905 961 09/30 22 IN 09/22 5903 424 09/30 1,580 CM 09/22 5904 2,110 09/28 5907 228 09/29 5909 1,887 From Chavez Companys Accounting Records

Cash Receipts Deposited Date Cash Debit Sept. 5 1,139 12 2,257 21 4,371 25 2,344 30 1,657 11,768

Cash Payments Check No. Cash Credit 5901 1,852 5902 761 5903 424 5904 2,070 5905 961 5906 980 5907 228 5908 357 5909 1,887 9,520

Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Aug. 31 Balance 18,487 Sept. 30 Total receipts R12 11,768 30,255 30 Total payments D23 9,520 20,735

Additional Information (a) Check No. 5904 is correctly drawn for $2,110 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 $2,070. (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 $1,580 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 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance