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 $1.095 and No. 5893 for $503. 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 17,560 TOTAL CHECKS AND DEBITS 10,636 TOTAL DEPOSITS AND CREDITS 11,765 CURRENT BALANCE 19, 229 CHECKS AND DEBITS Date No. Amount 09/03 5888 1, e95 09/04 5902 781 09/07 5901 1,808 09/17 684 NSE 89/20 5905 965 09/22 5903 448 89/22 5904 2,183 09/28 5907 273 09/29 5999 1,879 DEPOSITS AND CREDITS Date Amount 89/e5 1,130 09/12 2,240 09/21 4,433 09/25 2,362 89/30 20 IN 09/30 1,580 CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,130 12 2,248 21 4,433 25 2,362 30 1,716 11,881 Cash Payments Cash Check No. Credit 5901 1,888 5982 781 5993 448 5984 2,061 5995 965 5906 958 5997 273 5988 447 5999 1,879 9,620

Answer 1

	CHAVEZ COMPANY
	Bank Reconciliation
	Sep-30
	Bank Statement Balance		19,229	Book Balance		18,163
	Add:			Add:
	Deposit in Transit of Sep 30	1,716		Note Collected	1,580
				Interest Received	20
	Deduct:			Deduct:
	Outstanding Checks(#5893)	503		Error in recording check #5904	42
	Outstanding Checks(#5908)	447		NSF Check	684
	Outstanding Checks(#5906)	958
	Adjusted Bank Balance		19,037	Adjusted Book Balance		19,037
	Journal Entries
	General Journal	Debit	Credit
1)	No Entry Required
2)	Cash	20
	Interest Revenue		20
	(To record interest revenue)
3)	CASH	1,580
	Note Receivable		1580
	(To record note receivable)
4)	No Entry Required
5)	Accounts Receivable	684
	Cash		684
	(To record NSF Check)
6)	Computer Equipments	42
	Cash		42
	(To record error correction)