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 $1,062 and No. 5893 for $516. 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
19,000	9,860	11,808	20,948

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,062			09/05	1,133
09/04	5902	786			09/12	2,283
09/07	5901	1,834			09/21	4,375
09/17		659	NSF		09/25	2,348
09/20	5905	934			09/30	21	IN
09/22	5903	355			09/30	1,648	CM
09/22	5904	2,141
09/28	5907	234
09/29	5909	1,855

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,133
	12		2,283
	21		4,375
	25		2,348
	30		1,653
			11,792

Cash Disbursements
Check No.		Cash Credit
5901			1,834
5902			786
5903			355
5904			2,103
5905			934
5906			1,007
5907			234
5908			413
5909			1,855
			9,521

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				17,422
Sept. 30	Total receipts	R12	11,792		29,214
30	Total disbursements	D23		9,521	19,693

Additional Information Check No. 5904 is correctly drawn for $2,141 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. 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 $1,670 note for Chavez Company by the bank. The bank deducted a $22 collection fee. The collection and fee are not yet recorded.

Problem 8-5A Part 1

Required: 1. Prepare the September 30, 2017, bank reconciliation for this company.

CHAVEZ COMPANY
Bank Reconciliation
September 30, 2017
Bank statement balance			Book balance
Add:			Add:
Deduct:			Deduct:
Adjusted bank balance			Adjusted book balance

Problem 8-5A Part 2

2. Prepare the 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.) Record the entry related to the September 30 deposit, if required.

Record the entry related to interest earned, if required.

Record the entry related to the note receivable and the collection fee, if required.

Record the entry related to the outstanding checks, if required.

Record the entry related to the NSF check, if required.

Record the entry related to the error on check 5904, if required.