Problem $8-5$A $($Algo$)$ Preparing a bank reconciliation and recording entries LO P$3$

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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, Number $5888$ for $$1,055$ and Number $5893$ for $$483.$ Check Number $5893$ was still outstanding as of September $30.$ The following information is available for its September $30$ reconciliation.

DateDescriptionWithdrawalsDepositsBalanceSeptember $1$$ $20,000$September $3$Check #$5888$$ $1,055$$ $18,945$September $4$Check #$5902$$ $735$$ $18,210$September $5$Cash deposit$$$ $1,136$$ $19,346$September $7$Check #$5901$$ $1,815$$ $17,531$September $12$Cash deposit$$$ $2,224$$ $19,755$September $17$NSF check$ $631$$ $19,124$September $20$Check #$5905$$ $948$$ $18,176$September $21$Cash deposit$$$ $4,165$$ $22,341$September $22$Check #$5903$$ $436$$ $21,905$September $22$Check #$5904$$ $2,054$$ $19,851$September $25$Cash deposit$$$ $2,399$$ $22,250$September $28$Check #$5907$$ $267$$ $21,983$September $29$Check #$5909$$ $1,887$$ $20,096$September $30$Collected note$$$ $1,580$$ $21,676$September $30$Interest earned$$$ $23$$ $21,699$

From Chavez Company$$s Accounting Records

Cash Receipts DepositedDateCash DebitSeptember $51,136$September $122,224$September $214,165$September $252,399$September $301,75211,676$

Cash PaymentsCheck NumberCash Credit$59011,8155902735590343659042,015590594859061,0235907267590844859091,8879,574$

CashAccount Number $101$DateExplanationPRDebitCreditBalanceAugust $31$Balance$18,462$September $30$Total receiptsR$1211,67630,138$September $30$Total paymentsD$239,57420,564$

Additional Information

$($a$)$ Check Number $5904$ is correctly drawn for $$2,054$ to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $$2,015.$

$($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.

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

$2.$ Prepare journal entries to adjust the book balance of cash to the reconciled balance.