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 $1,040 and Number 5893 for $493. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation. Date Description Withdrawals Deposits Balance September 1 $ 17,000 September 3 Check #5888 $ 1,040 $ 15,960 September 4 Check #5902 $ 742 $ 15,218 September 5 Cash deposit $ 1,112 $ 16,330 September 7 Check #5901 $ 1,849 $ 14,481 September 12 Cash deposit $ 2,250 $ 16,731 September 17 NSF check $ 627 $ 16,104 September 20 Check #5905 $ 993 $ 15,111 September 21 Cash deposit $ 4,067 $ 19,178 September 22 Check #5903 $ 399 $ 18,779 September 22 Check #5904 $ 2,093 $ 16,686 September 25 Cash deposit $ 2,398 $ 19,084 September 28 Check #5907 $ 256 $ 18,828 September 29 Check #5909 $ 1,858 $ 16,970 September 30 Collected note $ 1,530 $ 18,500 September 30 Interest earned $ 15 $ 18,515 From Chavez Company’s Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,112 September 12 2,250 September 21 4,067 September 25 2,398 September 30 1,796 11,623 Cash Payments Check Number Cash Credit 5901 1,849 5902 742 5903 399 5904 2,054 5905 993 5906 1,039 5907 256 5908 356 5909 1,858 9,546 Cash Account Number 101 Date Explanation PR Debit Credit Balance August 31 Balance 15,467 September 30 Total receipts R12 11,623 27,090 September 30 Total payments D23 9,546 17,544 Additional Information (a) Check Number 5904 is correctly drawn for $2,093 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 collection of the note on September 30 is not yet recorded by the company. Required: 1. Prepare the September 30 bank reconciliation for this company.
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 $1,040 and Number 5893 for $493. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation. Date Description Withdrawals Deposits Balance September 1 $ 17,000 September 3 Check #5888 $ 1,040 $ 15,960 September 4 Check #5902 $ 742 $ 15,218 September 5 Cash deposit $ 1,112 $ 16,330 September 7 Check #5901 $ 1,849 $ 14,481 September 12 Cash deposit $ 2,250 $ 16,731 September 17 NSF check $ 627 $ 16,104 September 20 Check #5905 $ 993 $ 15,111 September 21 Cash deposit $ 4,067 $ 19,178 September 22 Check #5903 $ 399 $ 18,779 September 22 Check #5904 $ 2,093 $ 16,686 September 25 Cash deposit $ 2,398 $ 19,084 September 28 Check #5907 $ 256 $ 18,828 September 29 Check #5909 $ 1,858 $ 16,970 September 30 Collected note $ 1,530 $ 18,500 September 30 Interest earned $ 15 $ 18,515 From Chavez Company’s Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,112 September 12 2,250 September 21 4,067 September 25 2,398 September 30 1,796 11,623 Cash Payments Check Number Cash Credit 5901 1,849 5902 742 5903 399 5904 2,054 5905 993 5906 1,039 5907 256 5908 356 5909 1,858 9,546 Cash Account Number 101 Date Explanation PR Debit Credit Balance August 31 Balance 15,467 September 30 Total receipts R12 11,623 27,090 September 30 Total payments D23 9,546 17,544 Additional Information (a) Check Number 5904 is correctly drawn for $2,093 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 collection of the note on September 30 is not yet recorded by the company. Required: 1. Prepare the September 30 bank reconciliation for this company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 $1,040 and Number 5893 for $493. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation.
| Date | Description | Withdrawals | Deposits | Balance |
|---|---|---|---|---|
| September 1 | $ 17,000 | |||
| September 3 | Check #5888 | $ 1,040 | $ 15,960 | |
| September 4 | Check #5902 | $ 742 | $ 15,218 | |
| September 5 | Cash deposit | $ 1,112 | $ 16,330 | |
| September 7 | Check #5901 | $ 1,849 | $ 14,481 | |
| September 12 | Cash deposit | $ 2,250 | $ 16,731 | |
| September 17 | NSF check | $ 627 | $ 16,104 | |
| September 20 | Check #5905 | $ 993 | $ 15,111 | |
| September 21 | Cash deposit | $ 4,067 | $ 19,178 | |
| September 22 | Check #5903 | $ 399 | $ 18,779 | |
| September 22 | Check #5904 | $ 2,093 | $ 16,686 | |
| September 25 | Cash deposit | $ 2,398 | $ 19,084 | |
| September 28 | Check #5907 | $ 256 | $ 18,828 | |
| September 29 | Check #5909 | $ 1,858 | $ 16,970 | |
| September 30 | Collected note | $ 1,530 | $ 18,500 | |
| September 30 | Interest earned | $ 15 | $ 18,515 |
From Chavez Company’s Accounting Records
| Cash Receipts Deposited | |
| Date | Cash Debit |
|---|---|
| September 5 | 1,112 |
| September 12 | 2,250 |
| September 21 | 4,067 |
| September 25 | 2,398 |
| September 30 | 1,796 |
| 11,623 |
| Cash Payments | |
| Check Number | Cash Credit |
|---|---|
| 5901 | 1,849 |
| 5902 | 742 |
| 5903 | 399 |
| 5904 | 2,054 |
| 5905 | 993 |
| 5906 | 1,039 |
| 5907 | 256 |
| 5908 | 356 |
| 5909 | 1,858 |
| 9,546 |
| Cash | Account Number 101 | ||||
| Date | Explanation | PR | Debit | Credit | Balance |
|---|---|---|---|---|---|
| August 31 | Balance | 15,467 | |||
| September 30 | Total receipts | R12 | 11,623 | 27,090 | |
| September 30 | Total payments | D23 | 9,546 | 17,544 |
Additional Information
- (a) Check Number 5904 is correctly drawn for $2,093 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 collection of the note on September 30 is not yet recorded by the company.
Required:
1. Prepare the September 30 bank reconciliation for this company.
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