Question

Required information [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 $1,001 and No. 5893 for $482. The following information is available for its September 30, 2017, reconciliation From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 16,500 9,713 1,674 18,461 CHECKS AND DEBITS Date No. 5888 5902 09/07 5901 DEPOSITS AND CREDITS Date 09/05 09/12 09/21 09/25 09/30 09/30 Amount 1,001 768 1.832 623 972 359 2,066 230 1,862 Amount 1.167 2,249 4,374 2.372 09/03 09/04 09/17 NSF 09/20 5905 5903 5904 09/28 5907 5909 IN CM 17 09/22 09/22 1,495 09/29 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit 5 12 21 25 Sept 1,167 2,249 4,374 2,372 1,769 11,931 30 Cash Disbursements Check No. Credit 5901 5902 5903 5904 5905 Cash 1,832 768 359 2,027 972 981 230 424 1,862 9,455 5906 5907 5908 5909 Cash Date Acct. No. 101 Explanation Credit Balance 15,017 PR Debit Aug. 31 Balan Sept. 30 Total receipts 30 R12 Total disbursements 11,931 D23 26,948 9,455 17,493 Addtional Information Check No. 5904 is correctly drawn for $2,066 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 $2,027. 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. The credit memorandum is from the collection of a $1,520 note for Chavez Company by the bank. The bank deducted a $25 collection fee. The collection and fee are not yet recorded. Required: 1. Prepare the September 30, 2017, bank reconciliation for this company. 2. Prepare the jounal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No jourmal entry required in the first account field.)

Answer 1

CHAVEZ COMPANY
Bank Reconciliation
September 30, 2017
Bank statement balance		18461	Book balance		17493
Add:			Add:
Deposit of Sept. 30	1769		Interest earned	17
			Proceeds of note less $25 fee	1495
		1769			1512
		20230			19005
Deduct:			Deduct:
Check No. 5893	482		NSF check	623
Check No. 5906	981		Error (check 5904)	39
Check No. 5908	424
		1887			662
Adjusted bank balance		18343	Adjusted book balance		18343

2
Date	General Journal	Debit	Credit
Sept 30	No journal entry required
Sept 30	Cash	17
	Interest earned		17
Sept 30	Cash	1,495
	Collection expense	25
	Notes receivable		1,520
Sept 30	No journal entry required
Sept 30	Accounts receivable—S.Nilson	623
	Cash		623
Sept 30	Computer equipment	39		=2066-2027
	Cash		39