Question

Required information The following information applies to the questions displayed below) 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 $1,077 and No. 5893 for $518 Check No. 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation From the September 30 Bank Statement PREVIOUS BALANCE 19,500 TOTAL CHECKS AND DEBITS 9,928 TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 11,626 21,198 CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount Date Amount 09/03 5888 1,077 09/05 1,104 09/04 5982 791 09/12 2,282 09/07 5901 1,857 09/21 4,362 09/17 656 NSF 09/25 2,316 09/28 5985 985 09/30 22 IN 89/22 5903 407 09/30 1,540 CM 09/22 5984 2,058 09/28 5987 241 09/29 5909 1,864 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,184 2,282 4,362 2,316 1,682 11,745 25 & Prov a of 8 Next > w

Answer 1

CHAVEZ COMPANY
Bank Reconciliation
September 30
Bank statement balance		21198	Book balance		20043
Add:			Add:
Deposit of Sept. 30	1682		Interest earned	22
			Proceeds of note	1540
		1682			1562
		22880			21605
Deduct:			Deduct:
Check No. 5893	518		NSF check	656
Check No. 5906	1033		Error (check 5904)	44
Check No. 5908	424
		1975			700
Adjusted bank balance		20905	Adjusted book balance		20905