Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[ The following information applies to the questions displayed below. ] Chavez Company most recently reconciled its bank statement and book balances of cash on

[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 $1,025 and Number 5893 for $483. 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 $ 18,000
September 3 Check #5888 $ 1,025 $ 16,975
September 4 Check #5902 $ 753 $ 16,222
September 5 Cash deposit $ 1,165 $ 17,387
September 7 Check #5901 $ 1,865 $ 15,522
September 12 Cash deposit $ 2,260 $ 17,782
September 17 NSF check $ 681 $ 17,101
September 20 Check #5905 $ 950 $ 16,151
September 21 Cash deposit $ 4,212 $ 20,363
September 22 Check #5903 $ 387 $ 19,976
September 22 Check #5904 $ 2,120 $ 17,856
September 25 Cash deposit $ 2,353 $ 20,209
September 28 Check #5907 $ 274 $ 19,935
September 29 Check #5909 $ 1,861 $ 18,074
September 30 Collected note $ 1,650 $ 19,724
September 30 Interest earned $ 23 $ 19,747
From Chavez Companys Accounting Records
Cash Receipts Deposited
Date Cash Debit
September 51,165
September 122,260
September 214,212
September 252,353
September 301,763
11,753
Cash Payments
Check Number Cash Credit
59011,865
5902753
5903387
59042,084
5905950
5906974
5907274
5908403
59091,861
9,551
Cash Account Number 101
Date Explanation PR Debit Credit Balance
August 31 Balance 16,492
September 30 Total receipts R1211,75328,245
September 30 Total payments D239,55118,694
Additional Information
(a) Check Number 5904 is correctly drawn for $2,120 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 $2,084.
(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. 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 $1,025 and Number 5893 for $483. Check Number 5893 was still outstanding
as of September 30. The following information is available for its September 30 reconciliation.
From Chavez Company's Accounting Records Additional Information
(a) Check Number 5904 is correctly drawn for $2,120 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 $2,084.
(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:
Prepare the September 30 bank reconciliation for this company.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Advanced

Authors: Claudia Bienias Gilbertson

9th Edition

0538447559, 9780538447553

More Books

Students also viewed these Accounting questions