Question

Problem 6-5A (Algo) Preparing a bank reconciliation and recording adjustments LO P3 [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 $1,003 and No. 5893 for $489. 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 TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS 11,587 PREVIOUS BALANCE 19,500 9,825 CURRENT BALANCE 21, 262 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,003 09/04 5902 720 09/07 5901 1,856 09/17 659 NSF 09/20 5905 957 09/22 5903 387 09/22 5904 2,126 09/28 5907 228 09/29 5909 1,889 DEPOSITS AND CREDITS Date Amount 09/05 1,148 09/12 2,226 09/21 4,307 09/25 2, 303 09/30 13 IN 09/30 1,590 CM

Answer 1

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CHAVEZ COMPANY
Bank Reconcilation
Bank Statement Balance		21,262	Book Balance		20,119
Add:			Add:
Deposit of Sept 30	1,655		Interest Earned	13
			Proceed from Note	1,590
		1,655			1,603
		22,917			21,722
Deduct:			Deduct:
Check No 5893	489		NSF Check	659
Check No 5906	1,016		Error (Check 5904)	37
Check No 5908	386				696
		1,891
Adjusted Bank Balance		21,026	Adjusted Book balance		21,026