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 $1,096 and No. 5893 for $483. The following information is available for its September 30 reconciliation. From the September 30 Bank Statement PREVIOUS BALANCE 19,000 TOTAL CHECKS AND DEBITS 9,896 TOTAL DEPOSITS AND CREDITS 11,731 CURRENT BALANCE 20,835 CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount Date Amount 09/03 5888 1,096 09/05 1,145 09/04 5902 709 09/12 2,243 09/07 5901 1,889 09/21 09/17 635 NSF 09/25 2,399 09/20 5905 959 09/30 24 IN 09/22 5903 387 09/30 1,584 CM 09/22 5904 2,114 09/28 5907 237 09/29 5909 1,870 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,145 12 2,243 21 4,336 25 2,399 30 1,703 11,826 GD 3 Help ou f2 Cash Disbursements Cash Check No. Credit 5901 1,889 5902 709 5903 387 5904 2,071 5905 5906 1,013 5907 237 5908 403 5909 1,870 9,538 959 16:49 * PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total disbursements Acct. No. 101 Credit Balance 17,421 29,247 9,538 19,709 R12 023 11,826 Additional Information Check No. 5904 is correctly drawn for $2,114 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 $2,071. 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 (CM) is from the collection of a $1,600 note for Chavez Company by the bank. The bank deducted a $16 collection expense. The collection and expense are 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 View transaction list 00:56:38 Journal entry worksheet recorded. Huuto. Required: 2 1. Prepare the September 30 bank reconciliation for this company 3:56 Answer is complete and correct. CHAVEZ COMPANY Bank Reconciliation September 30 20,835 Book balance Add: Interest earned $ Bank statement balance Add: Deposit of Sept. 30 19,709 $ 1,703 S 24 Proceeds of note less $16 fee 1,584 1.703 22,538 1,608 21,317 Deduct: Check No. 5893 Check No. 5906 Check No. 5908 483 1,013 403 Deduct: NSF check Error (check 5904) 635 43 Adjusted bank balance 1,899 $ 20,639 Adjusted book balance 678 $ 20,639
