Question

Required information [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 $1,097 and No. 5893 for $483. The following information is available for its September 30, 2017, reconciliation From the September 30 Bank Statement PREVIOUS BALANCE 18,000 TOTAL CHECKS AND DEBITS 9,867 TOTAL DEPOSITS AND CREDITS 11.871 CURRENT BALANCE 20,004 CHECKS AND DEBITS Date Amount 09/03 5888 1,097 09/04 5902 753 09/07 5901 1,840 09/17 635NSF 09/2e5905 09/22 5903 09/22 5964 2,054 09/28 5907 09/29 5909 1,878 DEPOSITS AND CREDITS Date Amount 09/05 1,179 09/12 2,238 09/21 4,387 09/25 2,395 09/30 17IN 09/30 1,655CM 921 436

Answer 1

CHAVEZ COMPANY Bank Reconciliation September 30, 2017 20,004 Book Balance 18,791 Bank Statement Balance Add: Add: Deposit of September 30 1,655 17 Collection of Note net of collection charge 1,666 $25 (1,680 - 25) Interest Income 21,670 Deduct: NSF Check Error on Check no 5904 (2,054-2,011) 1,672 20,463 635 43 483 Deduct: Checks outstanding Check no 5893 Check no 5906 Check no 5908 Adjusted Bank Balance 969 678 433 1,885 19,785 Ajdusted Book Balance $ 19,785