Question

Record the entry related to the September 30 deposit, if required.

Record the entry related to interest earned, if required.

Record the entry related to the outstanding checks, if required.

Record the entry related to the note receivable and the collection fee, if required.

Record the entry related to the NSF check, if required.

Record the entry related to the error on check 5904, if required.

Problem 6-5A 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 $1.081 and No. 5893 for $508. The following information is available for its September 30, 2017 reconciliation. From the September 30 Bank Statement PREVIOUS BALANCE 19,500 TOTAL CHECKS AND DEBITS 9,842 TOTAL DEPOSITS AND CREDITS 11,876 CURRENT BALANCE 21,534

Answer 1

Chavez Company
Bank Reconciliation Statement as on 30th September, 2017
Particulars	Amount	Amount
Balance as per Cash Book		$20,230.00
Add:
Checks issued but not clear
Ch.No. 5893	$508.00
Ch.No. 5906	$1,038.00
Ch.No. 5908	$405.00	$1,951.00
Bank Interest not recorded in Cash book		$16.00
Credit Memorandum received in Bank		$1,680.00
		$3,647.00
Less:
Amount Deposited not reflected in bank
Sep.30	$1,663.00	$1,663.00
Bank collection fees for Credit Memo of $1680		$22.00
Difference of wrong amount accounted of Ch.No.5904		$44.00
(2094 - 2050 = 44)
NSF Check from S. Nilson not recorded in Cash book		$614.00
		$2,343.00
Balance as per Bank Statement		$21,534.00

Following is the rectification entries need to be pass
	Journal of Chavez Company
Date	Particulars	Dr/ Cr	Amount	Amount
30.09.2017	Cash A/c	Dr	$16.00
	To Bank Interest	Cr		$16.00
	( Being Bank Interest Accounted)
30.09.2017	Cash A/c	Dr.	$1,658.00
	Bank Charges A/c	Dr.	$22.00
	To Note Receivable A/c	Cr		$1,680.00
	( Being Note received in bank and bank collection fees recorded)
30.09.2017	Computer Equipment A/c	Dr	$44.00
	To Cash A/c	Cr		$44.00
	( Being rectification for Check no.5904 which was wrongly recorded as $2050 intead of $2094)
30.09.2017	S.Nilson A/c	Dr.	$614.00
	To Bank A/c	Cr		$614.00
	( Being S.Nilson's Check return as NSF)