Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,003 and Number 5893 for $481. Check Number 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 20,000 CHECKS AND DEBITS Date Number Amount 09/03 5888 1,003 09/04 5902 787 09/07 5901 1,820 09/17 09/20 5905 09/22 5903 448 Date September September September 21 September September Cash Receipts Deposited 5 12 09/22 5904 2,071 09/28 5907 227 09/29 5909 1,899 From Chavez Company's Accounting Records 25 30 TOTAL CHECKS AND DEBITS 9,845 Check Number 5901 5902 5903 5904 5905 Cash Payments 5906 5907 5908 5909 Date 09/05 1,125 09/12 2,229 09/21 4,087 650 NSF 09/25 2,331 940 Date August 31 September 30 September Cash Debit 1,125 2,229 4,087 2,331 1,757 11,529 30 Cash Credit 1,820 787 448 DEPOSITS AND CREDITS 2,029 940 1,004 227 389 1,899 9,543 Amount TOTAL DEPOSITS AND CREDITS 11,425 09/30 13 IN 09/30 1,640 CM Account Number 101 PR Debit Credit Balance 18,516 30,045 9,543 20,502 Cash Explanation Balance Total receipts R12 11,529 Total payments D23 CURRENT BALANCE 21,580 Additional Information (a) Check Number 5904 is correctly drawn for $2,071 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer
Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, Number 5888 for $1,003 and Number 5893 for $481. Check Number 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 20,000 CHECKS AND DEBITS Date Number Amount 09/03 5888 1,003 09/04 5902 787 09/07 5901 1,820 09/17 09/20 5905 09/22 5903 448 Date September September September 21 September September Cash Receipts Deposited 5 12 09/22 5904 2,071 09/28 5907 227 09/29 5909 1,899 From Chavez Company's Accounting Records 25 30 TOTAL CHECKS AND DEBITS 9,845 Check Number 5901 5902 5903 5904 5905 Cash Payments 5906 5907 5908 5909 Date 09/05 1,125 09/12 2,229 09/21 4,087 650 NSF 09/25 2,331 940 Date August 31 September 30 September Cash Debit 1,125 2,229 4,087 2,331 1,757 11,529 30 Cash Credit 1,820 787 448 DEPOSITS AND CREDITS 2,029 940 1,004 227 389 1,899 9,543 Amount TOTAL DEPOSITS AND CREDITS 11,425 09/30 13 IN 09/30 1,640 CM Account Number 101 PR Debit Credit Balance 18,516 30,045 9,543 20,502 Cash Explanation Balance Total receipts R12 11,529 Total payments D23 CURRENT BALANCE 21,580 Additional Information (a) Check Number 5904 is correctly drawn for $2,071 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![3
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, Number 5888 for $1,003 and Number 5893 for $481. Check Number
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
20,000
CHECKS AND DEBITS
Date Number Amount
09/03 5888 1,003
09/04 5902
787
09/07 5901 1,820
09/17
09/20 5905
09/22 5903 448
09/22 5904 2,071
09/28 5907
227
09/29 5909 1,899
From Chavez Company's Accounting Records
Date
September
September
September
September
September
Cash Receipts
Deposited
5
12
21
25
30
TOTAL CHECKS AND
DEBITS
9,845
Check
Number
5901
5902
5903
5904
5905
5906
5907
5908
5909
Date Amount
09/05 1,125
09/12 2,229.
09/21 4,087
650 NSF 09/25 2,331
940
Cash Payments
Cash
Debit
1,125
2,229
4,087
2,331
1,757
11,529
Cash
Credit
1,820
787
448
DEPOSITS AND
CREDITS
2,029
940
1,004
227
389
1,899
9,543
TOTAL DEPOSITS AND
CREDITS
11,425
13 IN
09/30
09/30 1,640 CM
Account Number 101
PR Debit Credit Balance
18,516
30,045
9,543 20,502
Cash
Date Explanation
August 31 Balance
September Total receipts R12 11,529
30
September
30 Total payments D23
CURRENT
BALANCE
21,580
Additional Information
(a) Check Number 5904 is correctly drawn for $2,071 to pay for computer equipment; however, the
recordkeeper misread the amount and entered it in the accounting records with a debit to Computer
O
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Transcribed Image Text:3
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, Number 5888 for $1,003 and Number 5893 for $481. Check Number
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
20,000
CHECKS AND DEBITS
Date Number Amount
09/03 5888 1,003
09/04 5902
787
09/07 5901 1,820
09/17
09/20 5905
09/22 5903 448
09/22 5904 2,071
09/28 5907
227
09/29 5909 1,899
From Chavez Company's Accounting Records
Date
September
September
September
September
September
Cash Receipts
Deposited
5
12
21
25
30
TOTAL CHECKS AND
DEBITS
9,845
Check
Number
5901
5902
5903
5904
5905
5906
5907
5908
5909
Date Amount
09/05 1,125
09/12 2,229.
09/21 4,087
650 NSF 09/25 2,331
940
Cash Payments
Cash
Debit
1,125
2,229
4,087
2,331
1,757
11,529
Cash
Credit
1,820
787
448
DEPOSITS AND
CREDITS
2,029
940
1,004
227
389
1,899
9,543
TOTAL DEPOSITS AND
CREDITS
11,425
13 IN
09/30
09/30 1,640 CM
Account Number 101
PR Debit Credit Balance
18,516
30,045
9,543 20,502
Cash
Date Explanation
August 31 Balance
September Total receipts R12 11,529
30
September
30 Total payments D23
CURRENT
BALANCE
21,580
Additional Information
(a) Check Number 5904 is correctly drawn for $2,071 to pay for computer equipment; however, the
recordkeeper misread the amount and entered it in the accounting records with a debit to Computer
O
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Transcribed Image Text:Date
September 1,125
September 2,229
12
September
21
4,087
September 2,331
September
1,757
11,529
5
25
30
Cash Payments
Check
Number
5901
5902
5903
5904
5905
5906
5907
5908
5909
Cash
Debit
Cash
Credit
1,820
Deduct:
787
448
2,029
940
1,004
227
389
1,899
9,543
Cash
Date Explanation
August 31 Balance
September Total receipts R12 11,529
30
September Total payments 023
30
Additional Information
(a) Check Number 5904 is correctly drawn for $2,071 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 $2,029.
Account Number 101
PR Debit Credit Balance
18,516
30,045
20,502
(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 $1,640 note for Chavez Company by the bank.
The collection is not yet recorded.
Bank statement balance
Add:
Required:
1. Prepare the September 30 bank reconciliation for this company.
Adjusted bank balance
TRESTEERS
TRECREER
9,543
COTTON
CHAVEZ COMPANY
Bank Reconciliation
$
September 30
0
0
Book balance
Add:
Deduct:
BEREG
0
0 Adjusted book balance
Q
$
0
0
0
0
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