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 $1,075 and No. 5893 for $504. 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	TOTAL CHECKS AND DEBITS	TOTAL DEPOSITS AND CREDITS	CURRENT BALANCE
19,000	10,013	11,592	20,579

 

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,075			09/05	1,152
09/04	5902	707			09/12	2,269
09/07	5901	1,899			09/21	4,111
09/17		661	NSF		09/25	2,370
09/20	5905	976			09/30	20	IN
09/22	5903	445			09/30	1,670	CM
09/22	5904	2,134
09/28	5907	265
09/29	5909	1,851

 
From Chavez Company’s Accounting Records
 

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,152
	12		2,269
	21		4,111
	25		2,370
	30		1,743
			11,645

 

Cash Payments
Check No.		Cash Credit
5901			1,899
5902			707
5903			445
5904			2,093
5905			976
5906			980
5907			265
5908			382
5909			1,851
			9,598

 

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				17,421
Sept. 30	Total receipts	R12	11,645		29,066
30	Total payments	D23		9,598	19,468

Additional Information

1. (a) Check No. 5904 is correctly drawn for $2,134 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,093.

2. (b) The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company.

3. (c) The credit memorandum (CM) is from the collection of a $1,670 note for Chavez Company by the bank. The collection is not yet recorded.

Problem 6-5A Part 1

Required:
 
1. Prepare the September 30 bank reconciliation for this company.