Saved Required information Problem 6-5A Preparing a bank reconciliation and recording adjustments LO P3 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 $1,020 and No. 5893 for $482. The following information is available for its September 30 reconciliation From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 20,000 9,904 11,684 21,780 CHECKS AND DEBITS DEPOSITS AND CREDITS Date 09/03 5888 09/84 5902 09/07 5901 Date 09/05 09/12 09/21 648 NSF 09/25 09/30 No. Amount Amount 1,020 781 1,184 2,274 4,307 2, 306 1,850 09/20 5905 09/22 5903 09/22 5904 09/28 5907 09/29 5909 956 416 2,136 225 1,872 22 IN 1,591 CM 09/30 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 12 1,184 2,274 4,307 2,306 1,652 25 30 11,723 Check No. 5901 5902 Cash Disbursements Cash Credit 1,850 781 9/28 5907 9/29 5909 225 1,872 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 12 21 25 30 1,184 2,274 4,307 2,306 1,652 11,723 Check No. 5901 5902 903 5904 5905 5906 907 5908 5909 Cash Disbursements Cash Credit 1,850 781 416 2,099 956 1,033 225 363 1.872 9,595 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance Aug. 31 Balance 18,498 30,221 20,626 Sept. 30 Total receipts R12 D23 11,723 30 Total disbursements 9,595 Additional Information Check No. 5904 is correctly drawn for $2,136 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 $2,099. 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. The credit memorandum (CM) is from the collection of a $1,610 note for Chavez Company by the bank. The bank deducted a $19 collection expense. The collection and expense are not yet recorded Additional Information Check No. 5904 is correctly drawn for $2,136 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 $2,099. 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. The credit memorandum (CM) is from the collection of a $1,610 note for Chavez Company by the bank. The bank deducted a $19 collection expense. The collection and expense are not yet recorded Problem 6-5A Part 1 Required 1. Prepare the September 30 bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30 Bank statement balance Book balance Add Add Deduct Deduct Adjusted bank balance 0 Adjusted book balance
