In: Accounting
[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 $1,063 and No. 5893 for $485. The
following information is available for its September 30, 2017,
reconciliation.
From the September 30 Bank Statement
PREVIOUS BALANCE | TOTAL CHECKS AND DEBITS | TOTAL DEPOSITS AND CREDITS | CURRENT BALANCE |
17,000 | 10,004 | 11,803 | 18,799 |
CHECKS AND DEBITS | DEPOSITS AND CREDITS | ||||||
Date | No. | Amount | Date | Amount | |||
09/03 | 5888 | 1,063 | 09/05 | 1,177 | |||
09/04 | 5902 | 757 | 09/12 | 2,228 | |||
09/07 | 5901 | 1,899 | 09/21 | 4,463 | |||
09/17 | 653 | NSF | 09/25 | 2,381 | |||
09/20 | 5905 | 987 | 09/30 | 13 | IN | ||
09/22 | 5903 | 423 | 09/30 | 1,541 | CM | ||
09/22 | 5904 | 2,129 | |||||
09/28 | 5907 | 236 | |||||
09/29 | 5909 | 1,857 | |||||
From Chavez Company’s Accounting Records
Cash Receipts Deposited | ||||
Date |
Cash Debit |
|||
Sept. | 5 | 1,177 | ||
12 | 2,228 | |||
21 | 4,463 | |||
25 | 2,381 | |||
30 | 1,744 | |||
11,993 | ||||
Cash Disbursements | ||||
Check No. |
Cash Credit |
|||
5901 | 1,899 | |||
5902 | 757 | |||
5903 | 423 | |||
5904 | 2,091 | |||
5905 | 987 | |||
5906 | 1,028 | |||
5907 | 236 | |||
5908 | 381 | |||
5909 | 1,857 | |||
9,659 | ||||
Cash | Acct. No. 101 | ||||
Date | Explanation | PR | Debit | Credit | Balance |
Aug. 31 | Balance | 15,452 | |||
Sept. 30 | Total receipts | R12 | 11,993 | 27,445 | |
30 | Total disbursements | D23 | 9,659 | 17,786 | |
Additional Information
Check No. 5904 is correctly drawn for $2,129 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 $2,091. 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 $1,560 note for
Chavez Company by the bank. The bank deducted a $19 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.
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1
Record the entry related to the September 30 deposit, if required.
2
Record the entry related to interest earned, if required.
3
Record the entry related to the note receivable and the collection fee, if required.
4
Record the entry related to the outstanding checks, if required.
5
Record the entry related to the NSF check, if required.
6
Record the entry related to the error on check 5904, if required.
1. Prepare the September 30, 2017, bank reconciliation for this company.
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