Chavez Company most recently reconciled its bank statement and book balances of cash on August...
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Accounting
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 $1,065 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
$ 17,000
September 3
Check #5888
$ 1,065
$ 15,935
September 4
Check #5902
$ 787
$ 15,148
September 5
Cash deposit
$ 1,109
$ 16,257
September 7
Check #5901
$ 1,812
$ 14,445
September 12
Cash deposit
$ 2,242
$ 16,687
September 17
NSF check
$ 690
$ 15,997
September 20
Check #5905
$ 901
$ 15,096
September 21
Cash deposit
$ 4,222
$ 19,318
September 22
Check #5903
$ 400
$ 18,918
September 22
Check #5904
$ 2,078
$ 16,840
September 25
Cash deposit
$ 2,339
$ 19,179
September 28
Check #5907
$ 265
$ 18,914
September 29
Check #5909
$ 1,890
$ 17,024
September 30
Collected note
$ 1,670
$ 18,694
September 30
Interest earned
$ 14
$ 18,708
From Chavez Companys Accounting Records
Cash Receipts Deposited
Date
Cash Debit
September 5
1,109
September 12
2,242
September 21
4,222
September 25
2,339
September 30
1,735
11,647
Cash Payments
Check Number
Cash Credit
5901
1,812
5902
787
5903
400
5904
2,041
5905
901
5906
957
5907
265
5908
411
5909
1,890
9,464
Cash
Account Number 101
Date
Explanation
PR
Debit
Credit
Balance
August 31
Balance
15,433
September 30
Total receipts
R12
11,647
27,080
September 30
Total payments
D23
9,464
17,616
Additional Information
(a) Check Number 5904 is correctly drawn for $2,078 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 $2,041.
(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.
Required:1. Prepare the September 30 bank reconciliation for this company.
Answer & Explanation
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