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[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

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[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 $1,057 and No. 5893 for $501. 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 17,500 TOTAL CHECKS AND DEBITS 9,740 TOTAL DEPOSITS AND CREDITS 11,657 CURRENT BALANCE 19,417 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,057 09/04 5902 765 09/07 5981 1,802 09/17 602 NSF 09/20 5985 973 09722 5903 378 89/22 5904 2,057 09/28 5987 233 09/29 5909 1,873 DEPOSITS AND CREDITS Date Amount 09/05 1,163 09/12 2,281 @9/21 4,195 09/25 2,363 89/30 15 IN 89/30 1,640 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,163 12 2,281 21 4.195 25 2,363 1,738 11,748 1.802 765 Cash Payments Cash Check No. Credit 5901 5902 5903 378 5904 2.020 5905 973 5996 960 5987 233 5908 5989 1.873 9.997 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 15,942 27,682 18,285 R12 D23 11,740 9,397 Additional Information (a) Check No. 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 $2,020. (6) 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 $1,640 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 Book balance Add: Bank statement balance Add Deduct: Deduct Adjusted bank balance Adjusted book balance

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