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Required information Problem 8-5A (Algo) Preparing a bank reconciliation and recording entries 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 Number 5888 for $1,028 and Number 5893 for $514. 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 $ 20,500 September 3 Check #5888 $ 1,028 $ 19,472 September 4 Check #5902 $ 729 $ 18, 743 September 5 Cash deposit $ 1,169 $ 19,912 September 7 Check #5901 $ 1,895 $ 18,017 September 12 Cash deposit $ 2,248 $ 20,265 September 17 NSF check $ 621 $ 19,644 September 20 Check 5905 $ 921 $ 18,723 September 21 Cash deposit $ 4,392 $ 23, 115 September 22 Check W5903 $ 449 $ 22,675 September 22 Check #5904 $ 2,077 $ 20,598 September 25 Cash deposit $ 2,375 $ 22,973 September 28 Check #5907 $ 237 $ 22,736 September 29 Check #5909 $ 1,861 $ 20,875 September 30 Collected note $ 1,690 $ 22,565 September 30 Interest earned $ 23 $ 22,588 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,169 September 12 2,248 Sentenher 71 4392 vy From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1, 169 September 12 2,248 September 21 4,392 September 25 2, 375 September 30 1, 783 11, 967 Cash Payments Check Number Cash Credit 5901 1,895 5902 729 5903 440 5904 2,034 5995 921 5906 997 5907 237 5908 437 5909 1,861 9,551 PR Debit Date August 31 September 30 September 30 Cash Explanation Balance Total receipts Total payments Account Number 101 Credit Balance 18,958 30,925 9,551 21,374 11, 967 R12 D23 Additional Information (a) Check Number 5904 is correctly drawn for $2,077 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 $2,034 (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. Problem 8-5A (Algo) Part 1 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 View transaction list Journal entry worksheet Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits Date General Journal Debit Credit September 30 Record entry Clear entry View general journal Required information Journal entry worksheet Record the entry related to the note receivable collected, if required. Note: Enter debits before credits Date General Journal Debit Credit September 30 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 Record the entry related to the outstanding checks, if required. Note: Enter debits before credits. Date General Journal Debit Credit September 30 Record entry Clear entry View general journal Required information Journal entry worksheet Go Record the entry related to the error on check 5904, if required. Note: Enter debits before credits General Journal Debit Credit Date September 30 Record entry Clear entry View general journal