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.AmountDateAmount09/0309/0409/0709/1709/2009/2209/2209/2809/2909/0509/1209/2109/2509/3009/3058881,1632,2284,0122,36818 IN1,037781590259011,900670 NSF9363782,0972641,8525905590359041,690 CM59075909From Chavez Company's Accounting RecordsCash Receipts DepositedCashDateDebitSept. 5121,1632,2284,0122,3681,660213011,431Cash PaymentsCashCheck No.Credit59011,9007815902590359043782,0549361,034264590559065907590859093911,8529,590150 ACCC.NO.ExplanationDebitBalance16,46127,89218,302DatePRCreditAug. 31 BalanceSept. 30 Total receipts30 Total paymentsR12D2311,4319,590Additional 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 $1,690 note for Chavez Company by the bank. The collectionis not yet recorded.Problem 8-5A Part 1Required:1. Prepare the September 30 bank reconciliation for this company.CHAVEZ COMPANYBank ReconciliationSeptember 30Bank statement balanceBook balanceAdd:Add:Deduct:Deduct:TAdiusted bank balance$o lAdiusted book balance$

The bank reconciliation statement is prepared to adjust the book balance and pass book balance with…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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