Chavez Company most recently reconciled its bank statement and book balances of
ID: 2473463 • Letter: C
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 $1,028.05 and No. 5893 for $494.25. The following information is available for its September 30, 2013, reconciliation.
1,682.75
937.00
Check No. 5904 is correctly drawn for $2,090 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 $2,060. 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 $1,500 note for Chavez Company by the bank. The bank deducted a $15 collection fee. The collection and fee are not yet recorded.
4.
Required information
Prepare the September 30, 2013, bank reconciliation for this company.(Round your answers to 2 decimal places.)
Prepare the journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)
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 $1,028.05 and No. 5893 for $494.25. The following information is available for its September 30, 2013, reconciliation.
Explanation / Answer
1.
Bank Reconcilliation
September 30, 2013
2.
Bank statement balance $18,453.25 Add: Deposit of September 30 $1682.75 1682.75 Total $20,136 Deduct Check No.5893 494.25 Check No.5906 982.30 Check No.5908 388 Total (1,864.55) Adjusted Bank Balance $18,271.45