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.
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.
2. Prepare
the journal entries (in dollars and cents) to adjust the book balance of cash
to the reconciled balance. Analysis Component
3. The bank statement reveals that some of the pre numbered checks in the sequence are missing. Describe three situations that could explain this.
TUTORIAL PREVIEW
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CHAVEJ
COMPANY
General
Journal
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Date
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Account Title
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Debit
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Credit
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Sep 30
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Cash
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12.50
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Interest earned
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12.50
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<-Correct
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To record
interest earned
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