Question

Problem 8-5A 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 $1,026 and No. 5893 for $518. 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 16,569 TOTAL CHECKS AND DEBITS 9,837 TOTAL DEPOSITS AND CREDITS 11,454 CURRENT BALANCE 18, 117 CHECKS AND DEBITS Date No. Rount e9/e3 5888 1,026 29/84 5902 762 09/07 5901 1,844 29/17 616 NSF e9/20 5905 991 09/22 5903 359 e9/22 5964 2,092 09/28 5987 277 e9/29 5999 1,878 DEPOSITS AND CREDITS Date Amount 09/05 1,187 09/12 2,233 09/21 4,066 09/25 2,390 09/30 18 IN 09/30 1,560 CM

Answer 1

				Bank Reconcilation
	Bank Statement Balance				18,117.00	Book Balance				16,931
	AddP					Add:
	Deposit of Sept 30			1,697.00		Interest Earned			18
						Proceed from Note			1560
					1,697.00					1578
					19,814.00					18,509.00
	Deduct:					Deduct:
	Check No 5893			518		NSF Check			616
	Check No 5906			1,003.00		Error (Check 5904)			38
	Check No 5908			438						654
					1,959.00
	Adjusted Bank Balance				17,855.00	Adjusted Book balance				17,855.00
		Adjusting entries
	Date	Accounting titles & explanations				debit	Credit
2)	2)	Cash				18
		interest earned					18
3)	3)	Cash				1,560
		Note receivable					1,560
5)	5)	Accounts receivable -S.Nilson				616
		Cash					616
6)	6)	Computer Equipment				38
		cash					38
		1)	no entry required for deposit
		4)	no entry required for checks oustanding