Question

Required information Problem 6-5A (Algo) 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 $1,021 and No. 5893 for $506. 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 19,500 TOTAL CHECKS AND DEBITS 9,782 TOTAL DEPOSITS AND CREDITS 11,725 CURRENT BALANCE 21,443 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,021 09/04 5902 781 09/07 5901 1,817 09/17 673 NSF 09/20 5905 909 09/22 5903 430 09/22 5904 2,052 09/28 5907 221 09/29 5909 1,878 DEPOSITS AND CREDITS Date Amount 09/05 1,176 09/12 2,287 09/21 4,336 09/25 2,385 09/30 21 IN 09/30 1,520 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,176 12 2,287 21 4,336 25 2,385 1,688 11,872

Answer 1

A E F 1 2 B с D Chavez Company Bank Reconciliation Sep-30 $ 21,443 Book balance Add: $ 1,688 $ 1,688 Collection of note $ 23,131 Interest earned 3 4 Bank statement balance 5 Add: 6 Deposits in transit 7 $ 20,449 $ 1,520 $ 21 $ 1,541 $ 21,990 8 9 Deduct: 10 Outstanding Checks 11 No: 5893 12 No: 5906 13 No: 5908 14 Adjusted bank balance $ 506 $ 964 $ 384 Deduct: NSF Check $ 673 Error in recording ($2,052 - $2,012) $ 40 $ 713 1854 $ 21,277 Adjusted book balance $ 21,277

А B с D E F 1 Chavez Company Bank Reconciliation N 21443 20449 3 11202 4 Bank statement balance 5 Add: 6 Deposits in transit 7 Book balance Add: Collection of note Interest earned 1688 =+B6 1520 =+C4+C6 21 =+E6+E7 =+F4+F7 8 506 9 Deduct: 10 Outstanding Checks 11 No: 5893 12 No: 5906 13 No: 5908 14 Adjusted bank balance 1964 Deduct: NSF Check 673 Error in recording ($2,052 - $2,012) =2052-2012 =+E11+E12 =+B11+B12+B13 =+C7-C13 Adjusted book balance =+F8-F12 384