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 $1.058 and No. 5893 for $493. The following information is available for its September 30 reconciliation From the September 30 Bank Statement TOTAL DEPOSITS AND CREDITS PREVIOUS BALANCE 19,500 TOTAL CHECKS AND DEBITS 10,010 CURRENT BALANCE 21.099 NO CHECKS AND DEBITS Date Amount 09/03 5888 1.058 09/04 5902 09/07 5901 1.392 09/17 09/20 5905 09/22 5903 430 09/22 5904 2.097 5907 09/295909 DEPOSITS AND CREDITS Date Amount 09/05 1.164 09/12 2,300 09/21 4,076 09/25 2.11 09/30 18 TN 1.670CH

Answer 1

CHAVEZ COMPANY
Bank Reconciliation
September 30
Bank statement balance		21099	Book balance		19885
Add:			Add:
Deposit of Sept. 30	1654		Interest earned	18
			Proceeds of note less $20 fee	1670
		1654			1688
		22753			21573
Deduct:			Deduct:
Check No. 5893	493		NSF check	670
Check No. 5906	982		Error (check 5904)	42
Check No. 5908	417
		1892			712
Adjusted bank balance		20861	Adjusted book balance		20861