Chavez Company most recently reconciled its bank statement and book balances of
ID: 2543347 • 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 $1,008 and No. 5893 for $482 The following information is available for its September 30, 2017, reconciliation. From the September 30 Bank Statement PREVIOUS BALANCE IMmTOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITSCURRENT BALAN 19, 352 17,500 9,863 11,715 CHECKS AND DEBITS DEPOSITS AND CREDITS Date 09/03 5888 09/04 5902 09/07 5901 Date 09/05 09/12 51 9/21 672NSF89/25 9/30 9/30 No Amount Amount 1,008 740 1,851 1,189 2,276 4,355 2,386 09/20 5905 09/22 5903 09/22 5904 09/28 5907 09/29 5909 961 408 2,126 20IN 1,489CM 224 1,873Explanation / Answer
Bank reconciliation Bank balance 19352 Add Deposit in transit 1762 Outstanding checks Chq no. 5893 482 Less Outstanding checks 1852 Chq no. 5906 1018 1852 Chq no. 5908 352 Adjusted bank balance 19262 1852 Cash balance 18468 Add Directly deposited in bank 1489 Interest 20 1509 Less Service fees Incorrect recorded (2126- 2083) 43 NSF check 672 715 Adjusted cash balance 19262 Journal entries 1 Cash 1489 Accounts receivable 1489 2 Cash 20 Interest revenue 20 NSF check 3 Accounts payable 672 Cash 672 4 Accounts payable 43 Cash 43