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 $1,003 and No. 5893 for $510. 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 9,837 TOTAL DEPOSITS AND CREDITS 11,727 CURRENT BALANCE 21,390 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,003 09/04 5902 748 09/07 5901 1,881 09/17 634 NSF 09/20 5905 975 5903 424 09/22 5904 2,052 09/28 5907 244 09/29 5909 DEPOSITS AND CREDITS Date Amount 09/05 1,187 09/12 2,286 09/21 4,202 09/25 2,364 09/30 18 IN 09/30 1,670 CM 09/22 1,876 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,187 12 2,286 21 4,202 25 2,364 30 1,656 11,695 *** Cash Payments Cash Check No. Credit 5901 1,881 5902 748 5903 424 5904 2,015 5905 975 5906 969 5907 244 5908 388 5909 1,876 9,520 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 17,987 29,682 20,162 R12 D23 11,695 9,520 Additional Information (a) Check No. 5904 is correctly drawn for $2,052 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 $2,015. (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 $1,670 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 21,390 Book balance Add: $ $ 20,162 Bank statement balance Add: Deposit of Sept. 30 $ 1,656 0 1.656 23.046 20.162 Deduct Deduct: Check No. 5893 Check No. 5906 510 909 1.419 21,627 Adjusted book balance 0 20,162 Adjusted bank balance $ $ 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