Chapter 8 Cash and Intermal Controls Chavez Company most recently reconciled its
ID: 2574943 • Letter: C
Question
Chapter 8 Cash and Intermal Controls Chavez Company most recently reconciled its bank statement and book balances of cash on and it reported two checks outstanding. No. 588 for $1.028.05 and No. 5893 for $494.25 information is available for its September 30, 2015, reconciliation. ecord From the September 30 Bank Statement CURRENT BALANCE 18.453.25 PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS 9,620.05 11,272.85 16,800.45 DAILY BALANCE CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount 09/03 5888 1,028.05 09/04 5902 719.90 09/07 5901 1,824.25 Date 08/31 09/03 09/04 16,800.45 15,772.40 15,052.50 16,156.25 4,332.00 16,558.90 15,958.65 15,021.65 19,114.65 16,625.55 8,977.25 18,763.40 16,955.75 18,453.25 09/12 09/21 600.25 NSF 09/25 09/30 1.103.75 2.226.90 4,093.00 2,351.70 12.50 IN 09/07 09/20 5905 937.00 09/22 5903 399.10 09/22 5904 2,090.00 09/28 5907 213.85 09/29 5909 1,807.65 09/30 1,485.00 CM09/12 09/20 09/21 09/22 09/25 09/28 09/29 09/30 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Disbursements Check No Date Debit Credit Sept ,103.75 2.226.90 4,093.00 2.351.70 1.68275 11.458.10 5901 5902 5903 5904 5905 5906 1,824.25 719.90 399.10 2.060.00 937.00 982.30 25 30Explanation / Answer
1.
2.
3. The reasons for the prenumbered checks missing in the bank statement could be:
i. The checks are issued but have not been presented to the bank for collection.
ii. Checks have been cancelled.
iii. Checks have been lost.
Chavez Company Bank Reconciliation September 30, 2015 Bank statement balance 18453.25 Book balance 17404.20 Add: Add: Deposit of September 30 in transit 1682.75 Note collected by bank 1500.00 20136.00 Interest credited by bank 12.50 1512.50 18916.70 Deduct: Deduct: Outstanding checks: NSF check 600.25 #5893 494.25 Error in recording check #5904 30 #5906 982.30 Bank collection fee 15 645.25 #5908 388 1864.55 Adjusted bank balance 18271.45 Adjusted book balance 18271.45