Question

Problem 8-5A 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 $1,026 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 16,589 TOTAL CHECKS AND DEBITS 9,837 TOTAL DEPOSITS AND CREDITS 11.454 CURRENT BALANCE 18, 117 CHECKS AND DEBITS Date No. Amount 09/03 5888 1,026 09/04 5902 762 29/07 59e1 1,844 09/17 616 NSF 09/20 5905 991 89/22 5983 359 89/22 5984 2,892 09/28 5987 277 09/29 5989 DEPOSITS AND CREDITS Date Amount 09/05 1,187 09/12 2,233 09/21 4,066 09/25 2,390 09/30 18 IN e9/30 1,560 CM

Answer 1

CHAVEZ COMPANY
Bank Reconciliation
September 30
Bank statement balance		18117	Book balance		16931
Add:			Add:
Deposit of Sept. 30	1697		Interest earned	18
			Proceeds of note	1560
		1697			1578
		19814			18509
Deduct:			Deduct:
Check No. 5893	518		NSF check	616
Check No. 5906	1003		Error (check 5904)	38
Check No. 5908	438
		1959			654
Adjusted bank balance		17855	Adjusted book balance		17855