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 $1,049 and No. 5893 for $505. 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 18,500 9,804 TOTAL, DEPOSITS AND CREDITS CURRENT BALANCE 20,224 CHECKS AND DEBITS Date No. Amount 09/03 5888 1049 09/04 5902 09/07 5901 09/17 644 NSE 09/20 5905 09/22 09/22 5904 5 907 5909 DEPOSITS AND CREDITS Date Amount 09/05 09/12 1.1296 09/21 4,065 09/25 09/30 20 IN 09/30 1,600 5903 0972 From Chavez Company's Accounting Records Cash Receipt Deposited Cash Debit

Answer 1

Solution:

H Chavez Company Bank Reconciliation - September 30 Bank's Cash balance Company's cash balance Particulars Amount Particulars Ending balance as per Bank Statements $20,224.00 Ending Balance as per cash books Additions: Additions: Outstanding cash receipt $1,792.00 Note Collection Interest earned Amount $19,171.00 10 11 12 13 14 $1,600.00 $20.00 Deductions: Deductions: Outstanding Checks (Check no 5893, 5900 and 5908) $1,907.00 NSF Cheque Incorrect recording of cheque ($2,052 - $2,014 $644.00 $38.00 19 Adjusted bank balance $20,109.00 Adjusted Cash balance $20,109.00 33 5) Sheet156 (46) Sheet743 Sheet744 Sheet745 She