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 $1,097 and No. 5893 for $483. The following information is available for its September 30, 2017, reconciliation. From the September 30 Bank Statement PREVIOUS BALANCE 18,000 TOTAL CHECKS AND DEBITS 9,867 TOTAL DEPOSITS AND CREDITS 11,871 CURRENT BALANCE 20,004 NO. CHECKS AND DEBITS Date Amount 09/03 5888 1,097 09/04 5902 753 e9/e7 5901 1,84e 09/17 635NSF 09/20 5905 921 09/22 5903 09/22 5984 2,054 09/28 5907 09/295999 1,878 DEPOSITS AND CREDITS Date Amount 09/05 1.179 09/12 2,238 09/21 4.387 09/25 2,395 09/30 17IN 09/30 1,655CM 436 253 From Chavez Company's Accounting Records Cash Receipts Deposited

Answer 1

				Bank Reconcilation
	Bank Statement Balance				20,004.00	Book Balance				18,791
	AddP					Add:
	Deposit of Sept 30			1,666.00		Interest Earned			17
						Proceed from Note			1655
					1,666.00					1672
					21,670.00					20,463.00
	Deduct:					Deduct:
	Check No 5893			483		NSF Check			635
	Check No 5906			969.00		Error (Check 5904)			43
	Check No 5908			433						678
					1,885.00
	Adjusted Bank Balance				19,785.00	Adjusted Book balance				19,785.00
		Adjusting entries
	Date	Accounting titles & explanations				debit	Credit
2)	2)	Cash				17
		interest earned					17
3)	3)	Cash				1,655
		collection expense				25
		Note receivable					1,680
5)	5)	Accounts receivable -S.Nilson				635
		Cash					635
6)	6)	Computer Equipment				43
		cash					43
		1)	no entry required for deposit
		4)	no entry required for checks oustanding