Problem 6-5A Preparing a bank reconcliation and recording adjustments LO P3 The

Question

Problem 6-5A Preparing a bank reconcliation and recording adjustments LO P3 The following information applies to the questions displayed below ] Chavez Company most recently reconciled its bank statoment and book balances of cash on August 31 and t reported two checks outstanding. No. 5888 for $1,019 and No. 5893 for $484. The following information is available for its September 30, 2017, reconcliation From the September 30 Bank Statement PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 19,500 21518 ECCS AND DEBITS DEPOSITS AND CREDITS Date No. 09/035888 09/04 5902 09/075901 750905 Amount 1,160 2.299 4,374 2,389 679NSF 09/25 09/205905 09/225903 09/22 5904 09/28 5907 09/29 5909 38709r30 2.0980930 From Chavez Company's Accounting Records Cash Recepts Deposited Date Sept. 5 2,299 4374 1664 11.886 30 Check No. 5901 5902 5903 Cash Credit 1863 775 387 2061 5906 5907 5908 427 1862 9,576 Acct No.101 PR Debit Credi Balance Date Explanation Aug 31 Balance Sept 30 Total receipts 17,997 29.883 R12 D23 30 Total disbursements 9,576 accounting records with a debit to Computer Equipment and a credit to Cash of $2.061. The NSF check shown in the statement was originally recelved from a customer, S. Nison, In payment of her account. Its return has not yet $1,690 note for Chavez Company by the bank. The bank deducted a $22 collection fee. The collection and fee are not yet recorded. been recorded by the company. The credit memorandum is from the collection of a

Explanation / Answer

Bank Reconcilation Bank Statement Balance 21,518 Book Balance 20,307 AddP Add: Deposit of Sept 30 1,664 Interest Earned 15 Proceed from Note 1668 1,664 1683 23,182 21,990 Deduct: Deduct: Check No 5893 484 NSF Check 679 Check No 5906 997 Error (Check 5904) 37 Check No 5908 427 716 1,908 Adjusted Bank Balance 21,274 Adjusted Book balance 21,274 Adjusting entries Date Accounting titles & explanations debit Credit 2) Cash 15 interest earned 15 3) Cash 1,668 collection expense 22 Note receivable 1,690 5) Accounts receivable -S.Nilson 679 Cash 679 6) Computer Equipment 37 cash 37 1) no entry required for deposit 4) no entry required for checks oustanding

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