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 $1,047 and No. 5893 for $511. 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 17,000 TOTAL CHECKS AND DEBITS 9,832 TOTAL DEPOSITS AND CREDITS 11,890 CURRENT BALANCE 19,058 CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount Date Amount 09/03 5888 1,047 09/05 1,156 09/04 5902 740 09/12 2,281 09/07 5901 1,830 09/21 4,418 09/17 685 NSF 09/25 2,342 09/20 5905 957 09/30 13 IN 09/22 5903 379 09/30 1,680 CM 09/22 5904 2,073 09/285907 231 09/29 5909 1,890 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,156 12 2.281 4,418 2,342 1.786 11,993 25 No. Cash Payments Check Cash Credit 5901 1 830 5902 740 5903 379 5904 2.035 5905 5906 1.045 5907 231 5908 394 59091, 890 9,501 957 Aug. Balance Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 15,442 Total receipts R12 11,983 27,425 30 Total payments D23 9,501 17,924 31 Balance Additional Information (a) Check No. 5904 is correctly drawn for $2,073 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 $2,035. (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 $1,680 note for Chavez Company by the bank. The collection is not yet recorded. Problem 6-5A Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add: Bank statement balance Add: . Deduct Deduct: Adjusted bank balance Adjusted book balance