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 TOTAL DEPOSITS AND CREDITS 11,479 PREVIOUS BALANCE TOTAL CHECKS AND DEBITS CURRENT BALANCE 18,000 9,915 19,564 CHECKS AND DEBITS Date 09/03 09/04 09/07 09/17 09/20 09/22 09/22 09/28 09/29 DEPOSITS AND CREDITS Date 09/05 09/12 09/21 09/25 09/30 09/30 No. 5888 5902 5901 Amount Amount 1,163 2,228 4,012 2,368 18 IN 1,690 CM 1,037 781 1,900 670 NSF 936 5905 5903 5904 5907 5909 378 2,097 264 1,852 From Chavez Company's Accounting Records
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 TOTAL DEPOSITS AND CREDITS 11,479 PREVIOUS BALANCE TOTAL CHECKS AND DEBITS CURRENT BALANCE 18,000 9,915 19,564 CHECKS AND DEBITS Date 09/03 09/04 09/07 09/17 09/20 09/22 09/22 09/28 09/29 DEPOSITS AND CREDITS Date 09/05 09/12 09/21 09/25 09/30 09/30 No. 5888 5902 5901 Amount Amount 1,163 2,228 4,012 2,368 18 IN 1,690 CM 1,037 781 1,900 670 NSF 936 5905 5903 5904 5907 5909 378 2,097 264 1,852 From Chavez Company's Accounting Records
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

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 $1,037 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
09/05
09/12
09/21
09/25
09/30
09/30
5888
1,163
2,228
4,012
2,368
18 IN
1,037
781
5902
5901
1,900
670 NSF
936
378
2,097
264
1,852
5905
5903
5904
1,690 CM
5907
5909
From Chavez Company's Accounting Records
Cash Receipts Deposited
Cash
Date
Debit
Sept. 5
12
1,163
2,228
4,012
2,368
1,660
21
30
11,431
Cash Payments
Cash
Check No.
Credit
5901
1,900
781
5902
5903
5904
378
2,054
936
1,034
264
5905
5906
5907
5908
5909
391
1,852
9,590
150

Transcribed Image Text:ACCC.
NO.
Explanation
Debit
Balance
16,461
27,892
18,302
Date
PR
Credit
Aug. 31 Balance
Sept. 30 Total receipts
30 Total payments
R12
D23
11,431
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 1
Required:
1. Prepare the September 30 bank reconciliation for this company.
CHAVEZ COMPANY
Bank Reconciliation
September 30
Bank statement balance
Book balance
Add:
Add:
Deduct:
Deduct:
TAdiusted bank balance
$
o lAdiusted book balance
$
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