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 $1,022 and No. 5893 for $492. 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
20,500	9,916	11,852	22,436

 

CHECKS AND DEBITS					DEPOSITS AND CREDITS
Date	No.	Amount			Date	Amount
09/03	5888	1,022			09/05	1,173
09/04	5902	715			09/12	2,221
09/07	5901	1,820			09/21	4,500
09/17		690	NSF		09/25	2,383
09/20	5905	954			09/30	15	IN
09/22	5903	450			09/30	1,560	CM
09/22	5904	2,119
09/28	5907	277
09/29	5909	1,869

 
From Chavez Company’s Accounting Records
 

Cash Receipts Deposited
Date		Cash Debit
Sept.	5		1,173
	12		2,221
	21		4,500
	25		2,383
	30		1,734
			12,011

 

Cash Payments
Check No.		Cash Credit
5901			1,820
5902			715
5903			450
5904			2,083
5905			954
5906			1,016
5907			277
5908			425
5909			1,869
			9,609

 

Cash			Acct. No. 101
Date	Explanation	PR	Debit	Credit	Balance
Aug. 31	Balance				18,986
Sept. 30	Total receipts	R12	12,011		30,997
30	Total payments	D23		9,609	21,388

Additional Information

1. (a) Check No. 5904 is correctly drawn for $2,119 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 $2,083.

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 $1,560 note for Chavez Company by the bank. The collection is not yet recorded.