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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. 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 10,003 TOTAL DEPOSITS AND CREDITS 11.664 CURRENT BALANCE 19,661 758 CHECKS AND DEBITS DEPOSITS AND CREDITS Date No. Amount Date Amount 09/03 5888 1,095 09/05 1,180 09/04 5902 09/12 2,235 09/07 5901 1,861 09/21 4,313 09/17 659NSP 09/25 2,307 09/20 5905 976 09/30 22IN 09/22 5903 09/30 1,607CM 09/22 5904 2. 108 09/28 5907 278 09/29 5909 1.896 372 From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Debit Sept. 5 1,180 2,235 4,313 2.307 1,772 11.807 Cash Disbursements Check Cash No. Credit 5901 1.861 5902 5903 5904 2.069 5905 5906 5907 5908 5909 1,896 9,605 Debit Cash Date Explanation Aug. 31 Balance Sept. 30 Total receipts 30 Total disbursements PR R12 D23 Acct. No. 101 Credit Balance 16,402 28,209 9,605 1 8,604 11,807 Additional Information Check No. 5904 is correctly drawn for $2,108 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,069. The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company. The credit memorandum is from the collection of a $1,630 note for Chavez Company by the bank. The bank deducted a $23 collection fee. The collection and fee are not yet recorded. Problem 6-5A Part 1 Required: 1. Prepare the September 30, 2017, bank reconciliation for this company. CHAVEZ COMPANY Bank Reconciliation September 30, 2017 Book balance Add: Bank statement balance Add: ol Deduct: Deduct: 0 Adjusted bank balance $ 0 Adjusted book balance

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