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, Number 5888 for $1.059 and Number 5893 for $512. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation Date Description Withdrawals Deposits Balance September 1 September 3 $ 18,000 Check #5888 $ 1,959 $ 16,941 September 4 Check #5902 $ 721 $ 16,220 September 5 Cash deposit $ 1,138 $ 17,358 September 7 Check #5901 $ 1,806 $ 15,552 September 12 Cash deposit $ 2,253 $ 17,805 September 17 NSF check $ 608 $ 17,197 September 20 Check #5905 $ 975 $ 16, 222 September 21 Cash deposit $ 4,384 $ 20,606 September 22 Check #5903 $ 428 $ 20,178 September 22 Check #5904 $ 2,057 $ 18, 121 September 25 Cash deposit $ 2,377 $ 20,498 September 28 Check #5907 $ 242 $ 20,256 September 29 Check 85909 $ 1,899 $ 18,357 September 30 Collected note $ 1,700 $ 20,057 September 30 Interest earned $ 13 $ 20,070 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,138 September 12 2,253 September 21 4,384 September 25 2,377 September 30 1,786 11,938 Cash Payments Check Number Cash Credit 5901 1,806 5902 721 5903 428 5994 2,016 5905 975 5906 1,020 5907 242 5908 381 5909 1,899 9,488 PR Debit Date August 31 September 30 September 30 Cash Explanation Balance Total receipts Total payments Account Number 101 Credit Balance 16,429 28,367 9,488 18,879 R12 D23 11,938 Additional Information (a) Check Number 5904 is correctly drawn for $2,057 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 (c) The collection of the note on September 30 is not yet recorded by the company. 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 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 3 4 5 6 Record the entry related to the September 30 deposit, if required. Note Enter debits before credits General Journal Debit Credit Date September 30 Record entry Clear entry View general Journal Journal entry worksheet Record the entry related to the outstanding checks, if required. Note: Enter debits before credits. Date General Journal Debit Credit September 30 Journal entry worksheet
