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 $1,095 and No. 5893 for $514. 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 19,000 9,930 20,950 TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS 11,880 CURRENT BALANCE CHECKS AND DEBITS Date No. Amount 09/03 5888 1.095 09/04 5902 758 09/07 5901 1, 880 09/17 603 NSE 09/20 5905 987 09/22 5903 401 09/22 5904 2,063 09/28 5907 254 09/29 5909 1,989 DEPOSITS AND CREDITS Date Amount 09/05 1,145 09/12 2,298 09/21 4,388 09/25 2,355 09/30 14 IN 09/30 1,680 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,145 12 2,298 21 4,388 25 2.355 30 1,693 11,879 Cash Payments Cash Check No: Credit 5901 1,880 5902 758 5903 401 5904 2,023 5905 987 5906 999 5907 254 09/20 09/29 DY 5909 254 1,889 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Data Debit Sept. 5 1,145 12 2,298 21 4,388 25 2,355 30 1,693 11,879 Cash Payments Canh Check No. Credit 5901 1,880 5902 758 5903 401 5904 2,023 5905 987 5906 999 5907 254 5908 403 5909 1,889 9,594 PR Debit Canh Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Credit Balance 17,391 29,270 9,594 19,676 R12 D23 11,879 Additional Information (a) Check No. 5904 is correctly drawn for $2,063 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 $2,023 (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 $1680 note for Chavez Company by the bank. The collection is not yet recorded No. 5904 is correctly drawn for $2,063 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 $2,023. (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 $1,680 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
