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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 $1,054 and No. 5893 for $489. 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 Additional Information

1. (a) Check No. 5904 is correctly drawn for $2,087 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 $2,044.
2. (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.
3. (c) The credit memorandum (CM) is from the collection of a $1,580 note for Chavez Company by the bank. The collection is not yet recorded.
4. Prepare the September 30 bank reconciliation for this company.

PREVIOUS BALANCE 20,500 TOTAL CHECKS AND DEBITS 9,910 TOTAL DEPOSITS AND CREDITS 11,387 CURRENT BALANCE 21,977 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,054 09/04 5902 746 09/07 5901 1,886 09/17 667 NSF 09/20 5905 931 09/22 5903 416 09/22 5904 2,087 09/28 5907 223 09/29 5909 1,900 DEPOSITS AND CREDITS Date Amount 09/05 1,139 09/12 2,238 09/21 4,063 09/25 2,351 09/30 16 IN 09/30 1,580 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,139 12 2,238 21 4,063 25 2,351 30 1,679 11,470 Cash Payments Cash Check No. Credit 5901 1,886 5902 746 5903 416 5904 2,044 5905 931 5906 1,000 5907 223 5908 399 5909 1,900 9,545 PR Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total payments Acct. No. 101 Credit Balance 18,957 30,427 9,545 20,882 R12 D23 11,470 CHAVEZ COMPANY Bank Reconciliation September 30 Bank statement balance Book balance Add: Add: 0 0 0 0 Deduct: Deduct: 0 0 Adjusted bank balance $ 0 Adjusted book balance $ 0

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