Required information Skip to question [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 $1,055 and Number 5893 for $502. 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 $ 20,500 September 3 Check #5888 $ 1,055 $ 19,445 September 4 Check #5902 $ 758 $ 18,687 September 5 Cash deposit $ 1,141 $ 19,828 September 7 Check #5901 $ 1,845 $ 17,983 September 12 Cash deposit $ 2,293 $ 20,276 September 17 NSF check $ 663 $ 19,613 September 20 Check #5905 $ 903 $ 18,710 September 21 Cash deposit $ 4,347 $ 23,057 September 22 Check #5903 $ 411 $ 22,646 September 22 Check #5904 $ 2,105 $ 20,541 September 25 Cash deposit $ 2,359 $ 22,900 September 28 Check #5907 $ 276 $ 22,624 September 29 Check #5909 $ 1,892 $ 20,732 September 30 Collected note $ 1,560 $ 22,292 September 30 Interest earned $ 24 $ 22,316 From Chavez Company’s Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,141 September 12 2,293 September 21 4,347 September 25 2,359 September 30 1,686 11,826 Cash Payments Check Number Cash Credit 5901 1,845 5902 758 5903 411 5904 2,062 5905 903 5906 966 5907 276 5908 396 5909 1,892 9,509

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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[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 $1,055 and Number 5893 for $502. 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				$ 20,500
September 3	Check #5888	$ 1,055		$ 19,445
September 4	Check #5902	$ 758		$ 18,687
September 5	Cash deposit		$ 1,141	$ 19,828
September 7	Check #5901	$ 1,845		$ 17,983
September 12	Cash deposit		$ 2,293	$ 20,276
September 17	NSF check	$ 663		$ 19,613
September 20	Check #5905	$ 903		$ 18,710
September 21	Cash deposit		$ 4,347	$ 23,057
September 22	Check #5903	$ 411		$ 22,646
September 22	Check #5904	$ 2,105		$ 20,541
September 25	Cash deposit		$ 2,359	$ 22,900
September 28	Check #5907	$ 276		$ 22,624
September 29	Check #5909	$ 1,892		$ 20,732
September 30	Collected note		$ 1,560	$ 22,292
September 30	Interest earned		$ 24	$ 22,316

From Chavez Company’s Accounting Records

Date	Cash Debit
Cash Receipts Deposited
September 5	1,141
September 12	2,293
September 21	4,347
September 25	2,359
September 30	1,686
	11,826

Check Number	Cash Credit
Cash Payments
5901	1,845
5902	758
5903	411
5904	2,062
5905	903
5906	966
5907	276
5908	396
5909	1,892
	9,509

Date	Explanation	PR	Debit	Credit	Balance
Cash	Account Number 101
August 31	Balance				18,943
September 30	Total receipts	R12	11,826		30,769
September 30	Total payments	D23		9,509	21,260

Additional Information

(a) Check Number 5904 is correctly drawn for $2,105 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 $2,062.
(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.

2. Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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