Problem 6-5A Preparing a bank reconciliation and recording adjustments LO P3

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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 $1,032 and No. 5893 for $508. Check No. 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation.

1. (a) Check No. 5904 is correctly drawn for $2,119 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 $2,081.
2. (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.
3. (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.

PREVIOUS BALANCE 19,500 TOTAL CHECKS AND DEBITS 9,831 TOTAL DEPOSITS AND CREDITS 11,410 CURRENT BALANCE 21,079 No. CHECKS AND DEBITS Date Amount 09/03 5888 1,032 09/04 5902 774 09/07 5901 1,869 09/17 600 NSF 09/20 5905 931 09/22 5903 365 09/22 5904 2,119 09/28 5907 279 09/29 5909 1,862 DEPOSITS AND CREDITS Date Amount 09/05 1,137 09/12 2,233 09/21 4,162 09/25 2,335 09/30 23 IN 09/30 1,520 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,137 12 2,233 21 4,162 25 2,335 30 1,657 11,524 Cash Receipts Deposited Cash Date Debit Sept. 5 1, 137 12 2,233 21 4,162 25 2,335 30 1,657 11,524 Cash Payments Cash Check No. Credit 5901 1,869 5902 774 5903 365 5904 2,081 5905 931 5906 1,017 5907 279 5908 405 5909 1,862 9,583 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Credit Balance 17,960 29, 484 9,583 19,901 R12 D23 11,524 Problem 6-5A Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30 Bank statement balance Add: Deposit of Sept. 30 Book balance Add: Interest earned Note proceeds 0 0 0 0 Deduct: Check No. 5893 Check No. 5906 Check No. 5908 Deduct: NSF check Error (check 5904) 0 0 Adjusted bank balance $ 0 Adjusted book balance $ 0 Problem 6-5A Part 2 2. Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 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 Sept 30 Record entry Clear entry View general journal