Chavez Company most recently reconciled its bank statement and book balances of
ID: 2555044 • 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, 2017, reconciliation.
From the September 30 Bank Statement
PREVIOUS BALANCE
TOTAL CHECKS AND DEBITS
TOTAL DEPOSITS AND CREDITS
CURRENT BALANCE
16,800.45
9,620.05
11,272.85
18,453.25
CHECKS AND DEBITS
DEPOSITS AND CREDITS
Date
No.
Amount
Date
Amount
09/03
5888
1,028.05
09/05
1,103.75
09/04
5902
719.90
09/12
2,226.90
09/07
5901
1,824.25
09/21
4,093.00
09/17
600.25
NSF
09/25
2,351.70
09/20
5905
937.00
09/30
12.50
IN
09/22
5903
399.10
09/30
1,485.00
CM
09/22
5904
2,090.00
09/28
5907
213.85
09/29
5909
1,807.65
From Chavez Company’s Accounting Records
Cash Receipts Deposited
Date
Cash
Debit
Sept.
5
1,103.75
12
2,226.90
21
4,093.00
25
2,351.70
30
1,682.75
11,458.10
Cash Disbursements
Check No.
Cash
Credit
5901
1,824.25
5902
719.90
5903
399.10
5904
2,060.00
5905
937.00
5906
982.30
5907
213.85
5908
388.00
5909
1,807.65
9,332.05
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
Balance
Aug. 31
Balance
15,278.15
Sept. 30
Total receipts
R12
11,458.10
26,736.25
30
Total disbursements
D23
9,332.05
17,404.20
Additional Information
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.
Required:
1. Prepare the September 30, 2017, bank reconciliation for this company. (Round your answers to 2 decimal places.)
PREVIOUS BALANCE
TOTAL CHECKS AND DEBITS
TOTAL DEPOSITS AND CREDITS
CURRENT BALANCE
16,800.45
9,620.05
11,272.85
18,453.25
CHAVEZ COMPANY Bank Reconciliation September 30, 2017 Bank statement balance Book balance Add: Add 0.00 0.00 0.00 0.00 Deduct: Deduct: 0.00 0.00 0.00 Adjusted bank balance $0.00 Adjusted book balanceExplanation / Answer
CHAVEZ COMPANY Bank Reconciliation 30-Sep-17 Bank statement balance $18,453.25 Book balance $17,404.20 Add: Add: Deposit of Sept. 30 $1,682.75 Interest earned $12.50 Proceeds of note less $15 fee 1,485.00 $1,682.75 $1,497.50 $20,136.00 $18,901.70 Deduct: Deduct: Check No. 5893 494.25 NSF check 600.25 Check No. 5906 982.3 Error (check 5904) 30 Check No. 5908 388 1864.55 630.25 Adjusted bank balance $18,271.45 Adjusted book balance $18,271.45