80.2K

Verified Solution

Link Copied!

Please don't cut off some of the answers.

Thanks.

Problem 8-5A (Algo) Preparing a bank reconciliation and recording entries 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, Number 5888 for $1,063 and Number 5893 for $494. Check Number 5893 was still outstanding as of September 30. The following information is available for its September 30 reconciliation. Date Description Withdrawals Deposits Balance September 1 $ 19,500 September 3 Check #5888 $ 1,063 $ 18,437 September 4 Check #5902 $ 703 $ 17,734 September 5 Cash deposit $ 1,165 $ 18,899 September Check #5901 $ 1,822 $ 17,077 September 12 Cash deposit $ 2,238 $ 19,315 September 17 NSF check $ 616 $ 18,699 September 20 Check 5905 $983 $ 17,716 September 21 Cash deposit $ 4,111 $ 21,827 September 22 Check w5903 5432 $ 21,395 September 22 Check 5904 $ 2,091 $ 19,304 September 25 Cash deposit 52,348 $ 21,652 September 28 Check #5907 $ 272 $ 21,375 September 29 Check #5909 $ 1,884 $ 19,491 September: 30 Collected note $1,620 $ 21,111 September 30 Interest earned $ 21 $ 21,132 From Chavez Company's Accounting Records Cash Receipts Deposited Date Cash Debit September 5 1,165 September 12 2,238 September 21 4,111 September 25 2,348 September 30 1.235 11,597 Cash Payments Check Number Cash Credit 5901 1,822 5902 703 5903 432 5904 2,050 5905 983 5906 1,025 5907 227 5988 426 5909 1,684 9,602 PR Debit Date August 31 September 30 September 30 Cash Explanation Balance Total receipts Total payments Account Number 101 Credit Balance 17,943 29,540 9.602 19,938 R12 D23 11,597 Additional Information (a) Check Number 5904 is correctly drawn for $2.091 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 $2.050 (b) 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 (c) The collection of the note on September 30 is not yet recorded by the company Problem 8-5A (Algo) Part 1 Problem 8-5A (Algo) Part 1 Required: 1. Prepare the September 30 bank reconciliation for this company CHAVEZ COMPANY Bank Reconciliation September 30 Book balance Add Bank statement balance Add Deduct Deduct Adjusted bank balance Adjustod book balance Prepare journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a ansaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry related to the September 30 deposit, if required. Note: Enter debits before credits General Journal Date September 30 Debit Credit

Answer & Explanation Solved by verified expert

See Answer