Question

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 $1.028 and No. 5893 for $494. 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 16,800 TOTAL CHECKS AND DEBITS 9,617 TOTAL DEPOSITS AND CREDITS 11,270 CURRENT BALANCE 18, 453 CHECKS AND DEBITS Date No. Amount 09/02 5808 1,028 09/04 5902719 09/07 5901 1.824 09/17 600 NSF 09/20 5905 937 09/22 5902 399 09/22 5904 2,090 09/28 5907213 09/29 5909 1,807 DEPOSITS AND CREDITS Date Amount 09/05 1,103 09/12 2,226 09/21 4,092 09/25 2,351 09/30 12 IN 09/30 1,485 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,103 2, 226 4,092 2,351 1,682 11,455 12

Answer 1

CHAVEZ COMPANY
Bank Reconciliation
September 30
Bank statement balance		18453	Book balance		17404
Add:			Add:
Deposit of Sept. 30	1682		Interest earned	12
			Proceeds of note	1485
		1682			1497
		20135			18901
Deduct:			Deduct:
Check No. 5893	494		NSF check	600
Check No. 5906	982		Error (check 5904)	30
Check No. 5908	388
		1864			630
Adjusted bank balance		18271	Adjusted book balance		18271