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 $1,045 and Number 5893 for $490. 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 $ 17,500 September 3 Check #5888 $ 1,045 $ 16,455 September 4 Check #5902 $ 791 $ 15,664 September 5 Cash deposit $ 1,130 $ 16,794 September 7 Check #5901 $ 1,840 $ 14,954 September 12 Cash deposit $ 2,258 $ 17,212 September 17 NSF check $ 610 $ 16,602 September 20 Check #5905 $ 983 $ 15,619 September 21 Cash deposit $ 4,291 $ 19,910 September 22 Check #5903 $ 378 $ 19,532 September 22 Check #5904 $ 2,131 $ 17,401 September 25 Cash deposit $ 2,328 $ 19,729 September 28 Check #5907 $ 212 $ 19,517 September 29 Check #5909 $ 1,851 $ 17,666 September 30 Collected note $ 1,510 $ 19,176 September 30 Interest earned $ 17 $ 19,193 From Chavez Company’s Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,130 September 12 2,258 September 21 4,291 September 25 2,328 September 30 1,707 11,714 Cash Payments Check Number Cash Credit 5901 1,840 5902 791 5903 378 5904 2,088 5905 983 5906 1,022 5907 212 5908 352 5909 1,851 9,517 Cash Account Number 101 Date Explanation PR Debit Credit Balance August 31 Balance 15,965 September 30 Total receipts R12 11,714 27,679 September 30 Total payments D23 9,517 18,162 Additional Information (a) Check Number 5904 is correctly drawn for $2,131 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 $2,088. (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.

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 $1,045 and Number 5893 for $490. 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 $ 17,500 September 3 Check #5888 $ 1,045 $ 16,455 September 4 Check #5902 $ 791 $ 15,664 September 5 Cash deposit $ 1,130 $ 16,794 September 7 Check #5901 $ 1,840 $ 14,954 September 12 Cash deposit $ 2,258 $ 17,212 September 17 NSF check $ 610 $ 16,602 September 20 Check #5905 $ 983 $ 15,619 September 21 Cash deposit $ 4,291 $ 19,910 September 22 Check #5903 $ 378 $ 19,532 September 22 Check #5904 $ 2,131 $ 17,401 September 25 Cash deposit $ 2,328 $ 19,729 September 28 Check #5907 $ 212 $ 19,517 September 29 Check #5909 $ 1,851 $ 17,666 September 30 Collected note $ 1,510 $ 19,176 September 30 Interest earned $ 17 $ 19,193 From Chavez Company’s Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,130 September 12 2,258 September 21 4,291 September 25 2,328 September 30 1,707 11,714 Cash Payments Check Number Cash Credit 5901 1,840 5902 791 5903 378 5904 2,088 5905 983 5906 1,022 5907 212 5908 352 5909 1,851 9,517 Cash Account Number 101 Date Explanation PR Debit Credit Balance August 31 Balance 15,965 September 30 Total receipts R12 11,714 27,679 September 30 Total payments D23 9,517 18,162 Additional Information (a) Check Number 5904 is correctly drawn for $2,131 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 $2,088. (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.

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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Question

Date	Description	Withdrawals	Deposits	Balance
September 1				$ 17,500
September 3	Check #5888	$ 1,045		$ 16,455
September 4	Check #5902	$ 791		$ 15,664
September 5	Cash deposit		$ 1,130	$ 16,794
September 7	Check #5901	$ 1,840		$ 14,954
September 12	Cash deposit		$ 2,258	$ 17,212
September 17	NSF check	$ 610		$ 16,602
September 20	Check #5905	$ 983		$ 15,619
September 21	Cash deposit		$ 4,291	$ 19,910
September 22	Check #5903	$ 378		$ 19,532
September 22	Check #5904	$ 2,131		$ 17,401
September 25	Cash deposit		$ 2,328	$ 19,729
September 28	Check #5907	$ 212		$ 19,517
September 29	Check #5909	$ 1,851		$ 17,666
September 30	Collected note		$ 1,510	$ 19,176
September 30	Interest earned		$ 17	$ 19,193

From Chavez Company’s Accounting Records

Date	Cash Debit
Cash Receipts Deposited
September 5	1,130
September 12	2,258
September 21	4,291
September 25	2,328
September 30	1,707
	11,714

Check Number	Cash Credit
Cash Payments
5901	1,840
5902	791
5903	378
5904	2,088
5905	983
5906	1,022
5907	212
5908	352
5909	1,851
	9,517

Date	Explanation	PR	Debit	Credit	Balance
Cash	Account Number 101
August 31	Balance				15,965
September 30	Total receipts	R12	11,714		27,679
September 30	Total payments	D23		9,517	18,162

Additional Information

(a) Check Number 5904 is correctly drawn for $2,131 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 $2,088.
(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.

**Bank Reconciliation - Educational Example**

**Required:**

1. Prepare the September 30 bank reconciliation for this company.

**CHAVEZ COMPANY**

**Bank Reconciliation**

**September 30**

**Bank statement balance**

**Book balance**

---

### Additions:

- This section is for any items that need to be added to the balances.
- Both the Bank statement balance and Book balance have spaces for multiple entries.
- Each line for additions ends with a subtotal of zero, indicating a space for entering individual adjustments.

#### Bank statement balance (Additions):
__________
__________
__________
__________
\+ 0 (Subtotal)

#### Book balance (Additions):
__________
__________
__________
__________
\+ 0 (Subtotal)

---

### Deductions:

- This section is for any items that need to be deducted from the balances.
- Both the Bank statement balance and Book balance have spaces for multiple entries.
- Each line for deductions ends with a subtotal of zero, indicating a space for entering individual adjustments.

#### Bank statement balance (Deductions):
__________
__________
__________
__________
\+ 0 (Subtotal)

#### Book balance (Deductions):
__________
__________
__________
__________
\+ 0 (Subtotal)

---

### Adjusted Balances:

- At the bottom, there are fields to record the final adjusted balances for both the bank statement balance and book balance after all additions and deductions have been accounted for.

#### Bank statement balance:
- Adjusted bank balance: $ ___

#### Book balance:
- Adjusted book balance: $ ___

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