Required Information 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 $1,020 and No. 5893 for $480. 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 TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS 11,647 CURRENT BALANCE 18,916 17,00 9,731 CHECKS AND DEBITS Date NO Amount 09/03 5888 1,020 09784 5902 709 09/07 5901 1,875 09/17 635 NSE 09/20 5905 95 09/22 5903 385 09/22 5964 2,034 09/21 5907 211 9/20 59 1,859 DEPOSITS AND CREDITS Date Amount 9/es 1.175 09/12 2,243 e9/21 4,227 29/25 2,309 ere 12 IN 9/ 1.540 CH From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,176 12 2,243 21 4,227 25 2,349 3e 1,657 11,652 Cash Payments Cash Check No. Credit 5981 1,875 5902 789 5903 385 5984 2,848 5905 953 5906 964 5987 211 5908 480 5909 1,859 9,404 PR Debit Credit Cash Date Explanation Aug 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance 15,500 27,152 17,748 R12 023 11,652 9,484 Additional Information (a) Check No. 5904 is correctly drawn for $2,084 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 $2,048 (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 S1,640 note for Chavez Company by the bank. The collection is not yet recorded oblem 6-5A Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Bank statement balance Add: Add: Deposit of Sept 30 Interest eamed Note proceeds 0 0 0 Deduct Deduct NSF check Error(check 5004) 0 o Adjusted book balance 0 Adjusted bank balance