Problem $6-5$A $($Algo$)$ Preparing a bank reconciliation and recording adjustments LO P$3$

Skip to question

$[$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 $$1,071$ and Number $5893$ for $$516.$ Check Number $5893$ 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 TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE

$19,0009,86011,65820,798$

CHECKS AND DEBITS DEPOSITS AND CREDITS

Date Number Amount Date Amount

$09/0358881,07109/051,196$

$09/04590275309/122,244$

$09/0759011,88509/214,379$

$09/17605$ NSF $09/252,301$

$09/20590590909/3018$ IN

$09/22590339009/301,520$ CM

$09/2259042,141$

$09/285907223$

$09/2959091,883$

From Chavez Company$$s Accounting Records

Cash Receipts Deposited

Date Cash Debit

September $51,196$

September $122,244$

September $214,379$

September $252,301$

September $301,651$

$11,771$

Cash Payments

Check Number Cash Credit

$59011,885$

$5902753$

$5903390$

$59042,100$

$5905909$

$59061,008$

$5907223$

$5908397$

$59091,883$

$9,548$

Cash Account Number $101$

Date Explanation PR Debit Credit Balance

August $31$ Balance $17,413$

September $30$ Total receipts R$1211,77129,184$

September $30$ Total payments D$239,54819,636$

Additional Information

$($a$)$ Check Number $5904$ is correctly drawn for $$2,141$ to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $$2,100.$

$($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 credit memorandum $($CM$)$ is from the collection of a $$1,520$ note for Chavez Company by the bank. The collection is not yet recorded.

Problem $6-5$A $($Algo$)$ Part $1$

Required:

$1.$ Prepare the September $30$ bank reconciliation for this company.