Problem 8-5A 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 $1,026 and No. 5893 for $504. Check No. 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 17, eee TOTAL CHECKS AND DEBITS 9,835 TOTAL DEPOSITS AND CREDITS 11,814 CURRENT BALANCE 18,979 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,826 89/84 5982 719 09/07 5901 1,899 89/17 653 NSF 89720 5905 906 09/22 5903 380 09/22 5984 2,134 39/28 5907 240 09729 5909 1,878 DEPOSITS AND CREDITS Date Amount 09/05 1,106 09/12 2,249 09/21 4,419 09/25 2,332 09/30 16 IN 09/30 1,690 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,108 12 2,249 21 4,419 25 2,332 30 1,792 11,900 Cash Payments Cash Check No. Credit 5901 1,899 5902 719 5903 380 5904 2,097 5905 906 5906 1,010 5997 240 5908 372 5909 1,878 9,501 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 15,470 27,370 17,869 R12 023 11,900 9,501 Additional Information (a) Check No. 5904 is correctly drawn for $2,134 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 $2,097 (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 $1.690 note for Chavez Company by the bank. The collection is not yet recorded Problem 8-5A Part 2 2. Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for o transaction/event, select "No journal entry required" in the first account field.)