Required Information 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 $1,091 and No. 5893 for $507. 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 CURRENT BALANCE 18,888 19,038 11,363 19,325 CHECKS AND DEBITS Date No. Amount 89/e3 5888 1,091 09/04 5902 783 29/07 5901 1,899 09/17 685 NSF e9/20 5905 09/22 5903 436 09/22 5984 2,878 09/28 5907 228 29/29 59e9 1,883 DEPOSITS AND CREDITS Date Amount 09/05 1,194 09/12 2,291 09/21 4,281 09/25 89/30 21 IN 09/30 1,530 CM 2,326 955 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,194 12 2,291 21 4,091 25 2,326 30 1,719 11,531 Cash Payments Cash Check No. Credit 5901 1,899 5992 783 5903 436 5984 2,840 5995 955 5906 972 5907 228 5908 357 5999 1,883 9,553 PR Debit Credit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 3e Total payments Acct. No. 101 Balance 16,482 27,933 18, 380 R12 D23 11,531 9,553 Additional Information (a) Check No. 5904 is correctly drawn for $2.078 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 $2,040. (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 $1,530 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 a transaction/event, select "No journal entry required" In the first account field.) Answer is not complete. General Journal No Date Debit Credit 1 Sept 30 No journal entry required ND Sept 30 Cash 21 Interest earned 21 3 > Sept 30 Cash 21 x 4 Sept 30 No journal entry required > 5 Sept 30 Accounts receivableS. Nilson > Cash 8 Sept 30 Computer equipment Cash O