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 $1,088 and No. 5893 for $514. The following information is available for its September 30, 2017, reconciliation.

From the September 30 Bank Statement

PREVIOUS BALANCE	TOTAL CHECKS AND DEBITS	TOTAL DEPOSITS AND CREDITS	CURRENT BALANCE
18,500	9,819	11,717	20,398

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,088			09/05	1,128
09/04	5902	779			09/12	2,285
09/07	5901	1,844			09/21	4,446
09/17		608	NSF		09/25	2,331
09/20	5905	988			09/30	15	IN
09/22	5903	357			09/30	1,512	CM
09/22	5904	2,077
09/28	5907	214
09/29	5909	1,864

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,128
	12		2,285
	21		4,446
	25		2,331
	30		1,719
			11,909

Cash Disbursements
Check No.		Cash Credit
5901			1,844
5902			779
5903			357
5904			2,038
5905			988
5906			993
5907			214
5908			441
5909			1,864
			9,518

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				16,898
Sept. 30	Total receipts	R12	11,909		28,807
30	Total disbursements	D23		9,518	19,289

Additional Information Check No. 5904 is correctly drawn for $2,077 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 $2,038. 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 is from the collection of a $1,530 note for Chavez Company by the bank. The bank deducted a $18 collection fee. The collection and fee are not yet recorded.

1. Prepare the September 30, 2017, bank reconciliation for this company. CHAVEZ COM PANY Bank Reconciliation September 30, 2017 Book balance Bank statement balance Add: Add: Deposit of Sept. 30 Interest earned Proceeds of note less $18 fee 0 0 0 Deduct: Deduct: Check No. 5893 NSF check Error (check 5904) Check No. 5906 Check No. 5908 10 0 S O Adjusted book balance Adjusted bank balance Journal entry worksheet 2 3 6 1 5 Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits. Date General Journal Debit Credit Sept 30 Record entry Clear entry View general journal CO Journal entry worksheet > 2 3 4 Record the entry related to interest earned, if required. Note: Enter debits before credits Date General Journal Debit Credit Sept 30 Record entry View general journal Clear entry LO Journal entry worksheet 2 3 1 4 5 Record the entry related to the note receivable and the collection fee, if required Note: Enter debits before credits. Date General Journal Debit Credit Sept 30 View general journal Record entry Clear entry LO Journal entry worksheet