Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reportedtwo checks outstanding, No. 5888 for $1,037 and No. 5893 for $502. Check No. 5893 was still outstanding as ofSeptember 30. The following information is available for its September 30 reconciliation.From the September 30 Bank StatementPREVIOUS BALANCETOTAL CHECKS AND DEBITSTOTAL DEPOSITS AND CREDITSCURRENT BALANCE18,0009,91511,47919,564CHECKS AND DEBITSDEPOSITS AND CREDITSDateNo.AmountDateAmount09/0309/0409/0709/1709/2009/2209/2209/2809/291,03778109/0509/1209/2109/2509/3009/301,1632,2284,0122,36818 IN588859021,900670 NSF9363782,0972641,85259015905590359041,690 CM59075909From Chavez Company's Accounting RecordsCash Receipts DepositedCashDebitDateSept. 5121,1632,2284,0122,3681,66021253011,431Cash PaymentsCashCheck No.5901Credit1,9007815902590359043782,0549361,0342643911,852590559065907590859099,590CashAcatNo101 Acct. No. 101BalanceCashExplanationBalanceDatePRDebitCreditAug. 31Sept. 30 Total receipts16,46127,89218,302R1211,43130 Total paymentsD239,590Additional Information(a) Check No. 5904 is correctly drawn for $2,097 to pay for computer equipment; however, the recordkeeper misread theamount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,054.(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 $1,690 note for Chavez Company by the bank. The collectionis not yet recorded.Problem 8-5A Part 22. Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet145Record the entry related to the September 30 deposit, if required.Note: Enter debits before credits.DateGeneral JournalDebitCreditSept 30

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Cash Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance Date PR Debit Credit 16,461 27,892 18,302 R12 11,431 D23 9,590 Additional Information (a) Check No. 5904 is correctly drawn for $2,097 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 $2,054. (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 $1,690 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.)

Cash Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Balance Date PR Debit Credit 16,461 27,892 18,302 R12 11,431 D23 9,590 Additional Information (a) Check No. 5904 is correctly drawn for $2,097 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 $2,054. (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 $1,690 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.)

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 3E

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

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 $1,037 and No. 5893 for $502. 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
18,000
9,915
11,479
19,564
CHECKS AND DEBITS
DEPOSITS AND CREDITS
Date
No.
Amount
Date
Amount
09/03
09/04
09/07
09/17
09/20
09/22
09/22
09/28
09/29
1,037
781
09/05
09/12
09/21
09/25
09/30
09/30
1,163
2,228
4,012
2,368
18 IN
5888
5902
1,900
670 NSF
936
378
2,097
264
1,852
5901
5905
5903
5904
1,690 CM
5907
5909
From Chavez Company's Accounting Records
Cash Receipts Deposited
Cash
Debit
Date
Sept. 5
12
1,163
2,228
4,012
2,368
1,660
21
25
30
11,431
Cash Payments
Cash
Check No.
5901
Credit
1,900
781
5902
5903
5904
378
2,054
936
1,034
264
391
1,852
5905
5906
5907
5908
5909
9,590
Cash
Acat
No
101

Acct. No. 101
Balance
Cash
Explanation
Balance
Date
PR
Debit
Credit
Aug. 31
Sept. 30 Total receipts
16,461
27,892
18,302
R12
11,431
30 Total payments
D23
9,590
Additional Information
(a) Check No. 5904 is correctly drawn for $2,097 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 $2,054.
(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 $1,690 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.)
View transaction list
Journal entry worksheet
1
4
5
Record the entry related to the September 30 deposit, if required.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Sept 30

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