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 $1,014 and Number 5893 for $492. 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
$ 1,014
$ 15,986
September 4
Check #5902
$ 751
$ 15,235
September 5
Cash deposit
$ 1,117
$ 16,352
September 7
Check #5901
$ 1,892
$ 14,460
September 12
Cash deposit
$ 2,232
$ 16,692
September 17
NSF check
$ 667
$ 16,025
September 20
Check #5905
$ 999
$ 15,026
September 21
Cash deposit
$ 4,125
$ 19,151
September 22
Check #5903
$ 408
$ 18,743
September 22
Check #5904
$ 2,072
$ 16,671
September 25
Cash deposit
$ 2,306
$ 18,977
September 28
Check #5907
$ 247
$ 18,730
September 29
Check #5909
$ 1,872
$ 16,858
September 30
Collected note
$ 1,610
$ 18,468
September 30
Interest earned
$ 13
$ 18,481
From Chavez Companys Accounting Records
Cash Receipts Deposited
Date
Cash Debit
September 5
1,117
September 12
2,232
September 21
4,125
September 25
2,306
September 30
1,799
11,579
Cash Payments
Check Number
Cash Credit
5901
1,892
5902
751
5903
408
5904
2,033
5905
999
5906
957
5907
247
5908
442
5909
1,872
9,601
Cash
Account Number 101
Date
Explanation
PR
Debit
Credit
Balance
August 31
Balance
15,494
September 30
Total receipts
R12
11,579
27,073
September 30
Total payments
D23
9,601
17,472
Additional Information
(a) Check Number 5904 is correctly drawn for $2,072 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 $2,033.
(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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