Chavez Company recently reconciled its bank statement and cash ledger balances on August 31 and reported two
Question:
Chavez Company recently reconciled its bank statement and cash ledger balances on August 31 and reported two outstanding checks, No. 5888 for $1,096 and No. 5893 for $489. The following information is available for your reconciliation as of September 30, 2017.
From the bank statement of September 30
BALANCE ANTERIOR | TOTAL CHECKS AND DEBIT | TOTAL DEPOSITS AND CREDITS | CURRENT BALANCE |
18,500 | 9,892 | 11,524 | 20,132 |
CHECKS AND DEBIT | DEPOSITS AND CREDITS | ||||||
Date | No. | Amount | Date | Amount | |||
09/03 | 5888 | 1,096 | 09/05 | 1,115 | |||
09/04 | 5902 | 753 | 12/09 | 2,286 | |||
09/07 | 5901 | 1,888 | 21/09 | 4,047 | |||
17/09 | 606 | NSF | 25/09 | 2,385 | |||
20/09 | 5905 | 972 | 30/09 | 15 | IN | ||
22/09 | 5903 | 368 | 30/09 | 1,676 | CM | ||
22/09 | 5904 | 2,083 | |||||
28/09 | 5907 | 268 | |||||
29/09 | 5909 | 1,858 | |||||
From the accounting records of the Chávez company
Deposited Cash Receipts | ||||
Date | money debit | |||
September | 5 | 1,115 | ||
12 | 2,286 | |||
21 | 4,047 | |||
25 | 2,385 | |||
30 | 1,736 | |||
11,569 | ||||
cash disbursements | ||||
check no. | money credit | |||
5901 | 1,888 | |||
5902 | 753 | |||
5903 | 368 | |||
5904 | 2,041 | |||
5905 | 972 | |||
5906 | 984 | |||
5907 | 268 | |||
5908 | 414 | |||
5909 | 1,858 | |||
9,546 | ||||
Money | account no. 101 | ||||
Date | Explanation | public relations | Debit | Credit | Balance |
August, 31 | Balance | 16,915 | |||
September 30th | total receipts | R12 | 11,569 | 28,484 | |
30 | total disbursements | D23 | 9,546 | 18,938 | |
additional information
Check No. 5904 for $2,083 is correctly drawn to pay for computer equipment; however, the registrar misread the amount and entered it into the accounting records with a debit to Computer Equipment and a credit to Cash of $2,041. The NSF check shown on the statement was originally received from a customer, S. Nilson, as payment on his account. His return has not yet been registered by the company. The credit memorandum is for the collection of a $1,700 bill for Chavez Company by the bank. The bank deducted a collection fee of $24. The charge and fee are not registered yet. Problem 8-5A Part 1
Required:
1. Prepare the bank reconciliation for September 30, 2017 for this company.
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild