Required information Problem 8-5A (Algo) Preparing a bank reconciliation and recording entries 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, Numbe 5888 for $1,077 and Number 5893 for $486. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation. Date September 1 September 3 September 4 September 5 September 7 September 12 September 17 September 20 September 21 September 22 September 22 Description Withdrawals Deposits Balance $ Check #5888 Check #5902 Cash deposit Check #5901 Cash deposit NSF check Check #5905 Cash deposit $ 1,077 $ 787 18,500 $ 17,423 $ 16,636 $ 1,178 $ 17,814 $ 1,823 $ 15,991 $ 2,223 $ 18,214 $ 656 $ 17,558 $ 928 $ 16,630 $ 4,498 $ 21,128 Check #5903 $ 425 $ 20,703 Check #5904 $ 2,140 $ 18,563 September 25 September 28 September 29 September 30 Cash deposit Check #5907 $ 2,390 $ 28,953 $277 Check #5909 $ 1,898 Collected note September 30 Interest earned $ 1,560 $ 21 $ 20,676 $18,778 $ 20,338 $ 20,359 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,178 September 12 2,223 September 21 4,498 September 25 2,390 September 30, 1,713 12,002 Cash Payments Check Number Cash Credit 5981 1,823 5982 787 5903 425 5904 2,103 5905 928 5986 972 5907 5908 5909 277 389 1,898 9,602 w** Cash Date Explanation PR Debit August 31 Balance Account Number 101 Credit Balance 16,937 September 30 Total receipts September 30 Total payments R12 12,002 D23 28,939 9,602 19,337 Additional Information (a) Check Number 5904 is correctly drawn for $2,140 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 $2,103. (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. Problem 8-5A (Algo) Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company. Bank statement balance Add: CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add Deduct 0 0 Deduct 0 Adjusted bank balance $ 0 Adjusted book balance $ 0