6-5
Chavez Company most recently reconciled its bank statement andbook balances of cash on August 31 and it reported two checksoutstanding, No. 5888 for $1,097 and No. 5893 for $486. Thefollowing information is available for its September 30, 2017,reconciliation.
From the September 30 Bank Statement
| PREVIOUS BALANCE | TOTAL CHECKS AND DEBITS | TOTAL DEPOSITS AND CREDITS | CURRENT BALANCE |
| 20,000 | 9,850 | 11,841 | 21,991 |
|
| CHECKS AND DEBITS | | | DEPOSITS AND CREDITS |
| Date | No. | Amount | | | Date | Amount | |
| 09/03 | 5888 | 1,097 | | | 09/05 | 1,127 | |
| 09/04 | 5902 | 743 | | | 09/12 | 2,257 | |
| 09/07 | 5901 | 1,856 | | | 09/21 | 4,472 | |
| 09/17 | | 659 | NSF | | 09/25 | 2,340 | |
| 09/20 | 5905 | 960 | | | 09/30 | 16 | IN |
| 09/22 | 5903 | 360 | | | 09/30 | 1,629 | CM |
| 09/22 | 5904 | 2,058 | | | | | |
| 09/28 | 5907 | 256 | | | | | |
| 09/29 | 5909 | 1,861 | | | | | |
|
From Chavez Company’s Accounting Records
| Cash Receipts Deposited |
| Date | Cash
Debit |
| Sept. | 5 | | 1,127 | |
| 12 | | 2,257 | |
| 21 | | 4,472 | |
| 25 | | 2,340 | |
| 30 | | 1,653 | |
| | | 11,849 | |
|
| Cash Disbursements |
| Check No. | | Cash
Credit |
| 5901 | | | 1,856 | |
| 5902 | | | 743 | |
| 5903 | | | 360 | |
| 5904 | | | 2,020 | |
| 5905 | | | 960 | |
| 5906 | | | 1,037 | |
| 5907 | | | 256 | |
| 5908 | | | 403 | |
| 5909 | | | 1,861 | |
| | | 9,496 | |
|
| Cash | Acct. No. 101 |
| Date | Explanation | PR | Debit | Credit | Balance |
| Aug. 31 | Balance | | | | 18,417 |
| Sept. 30 | Total receipts | R12 | 11,849 | | 30,266 |
| 30 | Total disbursements | D23 | | 9,496 | 20,770 |
|
Additional Information
Check No. 5904 is correctly drawn for $2,058 to pay for computerequipment; however, the recordkeeper misread the amount and enteredit in the accounting records with a debit to Computer Equipment anda credit to Cash of $2,020. The NSF check shown in the statementwas originally received from a customer, S. Nilson, in payment ofher account. Its return has not yet been recorded by the company.The credit memorandum is from the collection of a $1,650 note forChavez Company by the bank. The bank deducted a $21 collection fee.The collection and fee are not yet recorded.
2. Prepare the journal entries to adjust thebook balance of cash to the reconciled balance. (If noentry is required for a transaction/event, select "No journal entryrequired" in the first account field.)
