Question

Problem 8-5A Preparing a bank reconciliation and recording adjustments P3 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 18,453 719 CHECKS AND DEBITS Date No. Amount Sep. 3 5888 1,028 Sep. 4 5902 Sep. 7 5901 1,824 600 NSF Sep. 20 5905 937 5903 399 Sep. 22 5904 2,090 Sep. 28 5907 213 Sep. 295909 1,807 DEPOSITS AND CREDITS Date Amount Sep. 5 1,103 Sep. 12 2,226 Sep. 21 4,093 Sep. 25 2,351 Sep. 30 12 IN Sep. 30 1,485 CM Sep. 17 Sep. 22 From Chavez Company's Accounting Records

Answer 1

				Bank Reconcilation
	Bank Statement Balance				18,453	Book Balance				17,404
	AddP					Add:
	Deposit of Sept 30			1,682.00		Interest Earned			12
						Proceed from Note			1485
					1,682					1497
					20,135					18,901
	Deduct:					Deduct:
	Check No 5893			494		NSF Check			600
	Check No 5906			982.00		Error (Check 5904)			30
	Check No 5908			388						630
					1,864
	Adjusted Bank Balance				18,271	Adjusted Book balance				18,271
		Adjusting entries
	Date	Accounting titles & explanations				debit	Credit
2)	2)	Cash				12
		interest earned					12
3)	3)	Cash				1,485
		Note receivable					1,845
5)	5)	Accounts receivable -S.Nilson				600
		Cash					600
6)	6)	Computer Equipment				30
		cash					30
		1)	no entry required for deposit
		4)	no entry required for checks oustanding