Required information [The following information applies to the questions display

Question

Required information

[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 $1,094 and No. 5893 for $511. The following information is available for its September 30, 2017, reconciliation.

From the September 30 Bank Statement

From Chavez Company’s Accounting Records

Additional Information
Check No. 5904 is correctly drawn for $2,098 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 $2,060. 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 $1,630 note for Chavez Company by the bank. The bank deducted a $24 collection fee. The collection and fee are not yet recorded.

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

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.)

PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 17,000 9,840 11,590 18,750 Required information 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 $1,094 and No. 5893 for $511. 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 17,000 9,840 11,590 18,750 CHECKS AND DEBITS DEPOSITS AND CREDITS Date 09/05 09/12 09/21 No. Amount Date 09/03 5888 09/04 5902 09/07 5901 Amount 1,094 705 1,856 1,113 2,237 4,262 2,358 678NSF 09/25 09/30 09/30 938 366 2,098 253 1,852 14IN 09/20 5905 09/22 5903 09/22 5904 09/28 5907 09/29 5909 1,606CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 12 21 25 30 1,113 2,237 4,262 2,358 1,689 11,659 Check No. 5901 5902 5903 5904 5905 5906 5907 5908 5909 Cash Disbursements Cash Credit 1,856 705 366 2,060 938 986 253 391 1.852 9,407

Explanation / Answer

Chavez Company

Bank Reconciliation

September 30, 2017

In the books of Chavez Company:

Bank Statement Balance $ 18,750 Book Balance $ 17,647 Add Add: Deposit in Transit 1,689 Interest Earned 14 Net Proceeds of Note 1,606 1,689 1,620 20,439 19,267 Less: Less: Check # 5893 511 NSF Check 678 Check # 5906 986 Error ( Check # 5904) 38 Check # 5908 391 1,888 716 Adjusted Bank Balance 18,551 Adjusted Book Balance 18,551

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