Problem 6-5A Preparing a bank reconciliation and recording adjustments 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, No. 5888 for $1.058 and No. 5893 for $493. The following information is available for its September 30 reconciliation From the September 30 Bank Statement TOTAL DEPOSITS AND CREDITS PREVIOUS BALANCE 19,500 TOTAL CHECKS AND DEBITS 10,010 CURRENT BALANCE 21.099 NO CHECKS AND DEBITS Date Amount 09/03 5888 1.058 09/04 5902 09/07 5901 1.392 09/17 09/20 5905 09/22 5903 430 09/22 5904 2.097 5907 09/295909 DEPOSITS AND CREDITS Date Amount 09/05 1.164 09/12 2,300 09/21 4,076 09/25 2.11 09/30 18 TN 1.670CH From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,164 2,380 4,076 2,381 1,654 11,575 30 Cash Disbursements Cash Check No. Credit 5901 1,892 5902 784 5903 430 5904 2,055 5905 972 5906 982 5907 237 5908 417 5909 1.865 9,639 Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total disbursements Acct. No. 101 Balance 17,949 29,524 19,885 R12 11,575 9,639 Additional Information Check No. 5904 is correctly drawn for $2,097 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 $2,055. 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. The credit memorandum (CM) is from the collection of a $1.690 note for Chavez Company by the bank. The bank deducted a $20 collection expense. The collection and expense are not yet recorded. 1. Prepare the September 30 bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add Bank statement balance (Adjustod bank balance Adjustod book balance