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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 $1,063 and No. 5893 for $485. The following 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
17,000	10,004	11,803	18,799

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,063			09/05	1,177
09/04	5902	757			09/12	2,228
09/07	5901	1,899			09/21	4,463
09/17		653	NSF		09/25	2,381
09/20	5905	987			09/30	13	IN
09/22	5903	423			09/30	1,541	CM
09/22	5904	2,129
09/28	5907	236
09/29	5909	1,857

From Chavez Companys Accounting Records

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,177
	12		2,228
	21		4,463
	25		2,381
	30		1,744
			11,993

Cash Disbursements
Check No.		Cash Credit
5901			1,899
5902			757
5903			423
5904			2,091
5905			987
5906			1,028
5907			236
5908			381
5909			1,857
			9,659

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				15,452
Sept. 30	Total receipts	R12	11,993		27,445
30	Total disbursements	D23		9,659	17,786

Additional Information Check No. 5904 is correctly drawn for $2,129 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 $2,091. 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. The credit memorandum is from the collection of a $1,560 note for Chavez Company by the bank. The bank deducted a $19 collection fee. The collection and fee are not yet recorded.

Problem 6-5A Part 1

Required: 1. Prepare the September 30, 2017, bank reconciliation for this company.

	CHAVEZ COMPANY Bank Reconciliation September 30, 2017 Bank statement balance Book balance Add: Add: 0 0 0 0 Deduct: Deduct: 0 0 Adjusted bank balance $0 Adjusted book balance $0

1

Record the entry related to the September 30 deposit, if required.

2

Record the entry related to interest earned, if required.

3

Record the entry related to the note receivable and the collection fee, if required.

4

Record the entry related to the outstanding checks, if required.

5

Record the entry related to the NSF check, if required.

6

Record the entry related to the error on check 5904, if required.

1. Prepare the September 30, 2017, bank reconciliation for this company.

	CHAVEZ COMPANY Bank Reconciliation September 30, 2017 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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