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 $1,008 and Number 5893 for $511. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation Date Description Withdrawals Deposits September 1 September 3 Check #5888 $ 1,008 September 4 Check #5902 $ 714 September 5 Cash deposit $ 1,158 September 7 Check #5901 $ 1,865 September 12 Cash deposit $ 2,269 September 17 NSF check $ 612 September 20 Check #5905 $ 904 September 21 Cash deposit $ 4,207 September 22 Check #5903 $ 403 September 22 Check #5904 $ 2,070 September 25 Cash deposit $ 2,309 September 28 Check #5907 $ 228 September 29 Check #5909 $ 1,855 September 30 Collected note $ 1,610 September 30 Interest earned $ 16 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,158 September 12 2,269 September 21 4,207 September 25 2,309 September 30 1,691 11,634 Balance $ 17,500 $ 16,492 $ 15,778 $ 16,936 $ 15,071 $ 17,340 $ 16,728 $ 15,824 $ 20,031 $ 19,628 $ 17,558 $ 19,867 $ 19,639 $ 17,784 $ 19,394 $ 19,410 Cash Payments Check Number Cash Credit 5901 1,865 5902 714 5903 403 5904 2,026 5905 904 5906 984 5907 228 5908 438 5909 1,855 9,417 PR Debit Date August 31 September 30 September 30 Cash Explanation Balance Total receipts Total payments Account Number 101 Credit Balance 15,981 27,615 9,417 18,198 11,634 R12 D23 Additional Information (a) Check Number 5904 is correctly drawn for $2,070 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 $2,026. (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 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. Bank statement balance Add: Deposit of September 30 es $ 1,691 CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add: Interest earned Note proceeds 1,691 1.691 Deduct: NSF check Error (check 5904) 0 0 511 6121 Deduct: Check Number 5893 Check Number 5906 Check Number 5908 984 438 612 1,933 (242) Adjusted book balance Adjusted bank balance $ $ (612)
