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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 $1,003 and No. 5893 for $491. 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

17,500 9,882 11,379 18,997

CHECKS AND DEBITS DEPOSITS AND CREDITS

Date No. Amount Date Amount

09/03 5888 1,003 09/05 1,139

09/04 5902 779 09/12 2,234

09/07 5901 1,863 09/21 4,114

09/17 646 NSF 09/25 2,360

09/20 5905 981 09/30 15 IN

09/22 5903 414 09/30 1,517 CM

09/22 5904 2,057

09/28 5907 252

09/29 5909 1,887

 

From Chavez Company’s Accounting Records

Cash Receipts Deposited

Date Cash

Debit

Sept. 5 1,139

12 2,234

21 4,114

25 2,360

30 1,661

11,508

Cash Disbursements

Check No. Cash

Credit

5901 1,863

5902 779

5903 414

5904 2,014

5905 981

5906 1,047

5907 252

5908 432

5909 1,887

9,669

Cash Acct. No. 101

Date Explanation PR Debit Credit Balance

Aug. 31 Balance 16,006

Sept. 30 Total receipts R12 11,508 27,514

30 Total disbursements D23 9,669 17,845

 

Additional Information

Check No. 5904 is correctly drawn for $2,057 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 $2,014. 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 (CM) is from the collection of a $1,540 note for Chavez Company by the bank. The bank deducted a $23 collection expense. The collection and expense are not yet recorded. Prepare the September 30 bank reconciliation for this company. Bank statement balance Add: Deposit of Sept. 30 CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add: Interest earned Proceeds of note less S23 fee 0 0 0 0 Deduct Deduct: Check No. 5893 Check No 5906 Check No. 5908 NSF check Error (check 5904) 0 0 Adjusted bank balance $ Adjusted book balance 0
View transaction list View journal entry worksheet E No Date Debit Credit General Journal No journal entry required Sept 30 2 Sept 30 Cash Interest earned 3 Sept 30 Cash 4 Sept 30 No journal entry required 5 Sept 30 Accounts receivable--S. Nilson Cash Sept 30 Computer equipment Cash