Required information [The following information applies to the questions display

Question

Required information [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 $1,049 and No. 5893 for $516. 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 19,000 9,736 11,640 20,904 AND DEBITS DEPOSITS AND CREDITS DateNo.Amount 09/03 5888 09/04 5902 09/07 5901 Date 09/05 09/12 09/21 605NSF 09/25 09/30 09/30 Amount 1,049 742 1,823 ,173 2,293 4,178 2,388 09/20 5905 09/22 5903 09/22 5904 09/28 5907 09/29 5909 944 369 2,053 252 1,899 16IN 1,592CM From Chavez Company's Accounting Records Cash Receipts Deposited Cash Date Sept. 5 12 21 25 30 1,173 2,293 4,178 2,388 1,691 11,723

Explanation / Answer

Bank reconciliation Bank balance 20904 Add Deposit in transit 1691 Outstanding checks Chq no. 5893 516 Less Outstanding checks 1915 Chq no. 5906 997 1915 Chq no. 5908 402 Adjusted bank balance 20680 1915 Cash balance 19722 Add Directly deposited in bank 1592 Interest 16 1608 Less Service fees Incorrect recorded (2053- 2008) 45 NSF check 605 650 Adjusted cash balance 20680

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