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 $1,028.05 and No. 5893 for $494.25. The following information is available for its September 30, 2013, reconciliation. From the September 30 Bank Statement
PREVIOUS BALANCE TOTAL CHECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE
16,800.45 9,620.05 11,272.85 18,453.25
CHECKS AND DEBITS DEPOSITS AND CREDITS DAILY BALANCE
Date No. Amount Date Amount Date Amount
09/03 5888 1,028.05 09/05 1,103.75 08/31 16,800.45
09/04 5902 719.90 09/12 2,226.90 09/03 15,772.40
09/07 5901 1,824.25 09/21 4,093.00 09/04 15,052.50
09/17 600.25 NSF 09/25 2,351.70 09/05 16,156.25
09/20 5905 937.00 09/30 12.50 IN 09/07 14,332.00
09/22 5903 399.10 09/30 1,485.00 CM09/12 16,558.90
09/22 5904 2,090.00 09/17 15,958.65
09/28 5907 213.85 09/20 15,021.65
09/29 5909 1,807.65 09/21 19,114.65
09/22 16,625.55
09/25 18,977.25
09/28 18,763.40
09/29 16,955.75
09/30 18,453.25
From Chavez Company’s Accounting Records
Cash Receipts Deposited
Date Cash
Debit
Sept. 5 1,103.75
12 2,226.90
21 4,093.00
25 2,351.70
30
1,682.75
11,458.10
Cash Disbursements
Check No. Cash
Credit
5901 1,824.25
5902 719.90
5903 399.10
5904 2,060.00
5905
937.00
5906 982.30
5907 213.85
5908 388.00
5909 1,807.65
9,332.05
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Aug. 31 Balance 15,278.15
Sept. 30 Total receipts R12 11,458.10 26,736.25
30 Total disbursements D23 9,332.05 17,404.20
Additional Information
Check No. 5904 is correctly drawn for $2,090 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 $2,060. 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 $1,500 note for Chavez Company by the bank. The bank deducted a $15 collection fee. The collection and fee are not yet recorded.
Required:
1. Prepare the September 30, 2013, bank reconciliation for this company. (Round your answers to 2 decimal places.)
2. Prepare the journal entries to adjust the book balance of cash to the reconciled balance. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)