1. Prepare the September 30, 2017, bank reconciliation for this company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Cash
Acct. No. 101
Explanation
Aug. 31 Balance
Sept. 30 Total receipts
Date
PR
Debit
Credit
Balance
16,946
28,761
19,204
R12
11,815
30 Total disbursements
D23
9,557
Additional Information
Check No. 5904 is correctly drawn for $2,127 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 $2,088. 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 $1,650 note for Chavez
Company by the bank. The bank deducted a $18 collection fee. The collection and fee are not yet recorded.
Problem 8-5A Part 1
Required:
1. Prepare the September 30, 2017, bank reconciliation for this company.
CHAVEZ COMPANY
Bank Reconciliation
September 30, 2017
Bank statement balance
Book balance
Add:
Add:
Deduct:
Deduct:
Adjusted bank balance
2$
0 Adjusted book balance
$

Transcribed Image Text: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 $1,056 and No. 5893 for $498. 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
18,500
9,829
11,701
20,372
CHECKS AND DEBITS
DEPOSITS AND CREDITS
Date
No.
Amount
Date
Amount
09/03
5888
09/05
09/12
09/21
1,056
1,185
2,223
4,272
2,368
09/04
5902
708
09/07
09/17
5901
1,818
09/25
09/30
09/30
666NSF
09/20
5905
917
21IN
09/22
5903
437
1,632CM
09/22
5904
2,127
09/28
5907
221
09/29
5909
1,879
From Chavez Company's Accounting Records
Cash Receipts Deposited
Cash
Date
Debit
Sept. 5
12
1,185
2,223
4,272
2,368
1,767
21
25
30
11,815
Cash Disbursements
Cash
Check No.
Credit
1,818
708
5901
5902
5903
437
5904
2,088
5905
917
5906
1,048
5907
221
5908
441
5909
1,879
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