Question

Problem 6-5A Preparing a bank reconciliation and recording adjustments LO P3 [The following information applies to the questions displayed below.] 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 $1,022 and No. 5893 for $503. 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 PREVIOUS BALANCE 17,000 TOTAL CHECKS AND DEBITS 9,941 TOTAL DEPOSITS AND CREDITS 11,621 CURRENT BALANCE 18,680 793 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,022 09/04 5902 09/07 5901 1,864 09/17 641 NSF 09/20 5905 934 09/22 5903 431 09/22 5904 2,138 09/28 5907 221 09/295909 1,897 DEPOSITS AND CREDITS Date Amount 09/05 1,134 09/12 2,247 09/21 4,254 09/25 2,321 09/30 15 IN 09/30 1,650 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,134 2,247 4,254 2,321 1,785 11,741

Answer 1

Bank reconciliation statement
bank statement balance			18680	book balance		17541
add: deposit on 30sept			1785	add: interest earned		15
				proceeds from notes		1650
less: cash payments				less: NSF check	641
cheque 5893		503		check 5904 (2138-2098)	40	681
cheque 5906		1002
cheque 5908		435	1940
Adjuested bank balance			18525	adjusted book balance		18525

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