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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
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 $1.027 and No. 5893 for $503. 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 19,500 TOTAL CHECKS AND DEBITS 9,762 TOTAL DEPOSITS AND CREDITS 11,359 CURRENT BALANCE 21, e97 No. 768 CHECKS AND DEBITS Date Amount 09/03 5888 1,027 09/04 5902 09/07 5901 1,825 09/17 638 NSE 09/28 5905 942 89/22 5903 379 09/22 5984 2,660 09/28 5907 259 09/29 59e9 1,864 DEPOSITS AND CREDITS Date Amount 09/05 1,194 89/12 2,287 89/21 4,005 09/25 2,389 09/30 14 IN 09/30 1,550 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,194 12 2,287 21 4, ees 25 2,309 30 1,724 11,519 Cash Payments Cash Check No. Credit 5901 1,825 5902 768 5903 379 5924 2,616 5905 942 5986 979 5997 259 5908 435 5999 1.864 9,467 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 17,970 29,489 28,822 11,519 R12 D23 9,467 Additional Information (a) Check No. 5904 is correctly drawn for $2.060 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 $2,016. (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. (9) The credit memorandum (CM) is from the collection of a $1,550 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: Adjusted bank balance Adjusted book balance 2. Prepare foumal 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 Mat Journal entry worksheet
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