Chavez Compony most recently reconciled its bank statement a

Chavez Compony most recently reconciled its bank statement and book balances of cosh on August 31 and it reported two checks outstanding. No. 5888 for $1.078 and No. 5893 for $488. The following information is evailable for its September 30, 2015, reconciliation From the September 30 Bank Stotement PREVIOUS BALANCE 19.000 TOTAL CHECKS AND DEBITS 9,767 TOTAL DEPOSITS AND CREDITS 11.460 CURRENT BALANCE 20,693 CHECKS AND DEBITS DEPOSITS AND CREDITS DAILY BALANCE Amount 1,170 Amount 1078 733 1,817 DoteAmount 09/03 09/04 09/07 5889 5902 09/05 09/12 09/21 09/03 09/04 09/05 16 IN 09/07 1611 CM 09/12 9.000 7184 6,537 17.922 607 NSF 09/25 2.312 18.354 09/20 09/22 09/22 09/28 09/29 5905 5903 5904 936 412 2.090 228 1,861 09/30 09/30 13.834 18.227 17,291 21,345 09/20 09/21 09/22 09/25 09/28 09/29 S909 8.843 21,155 20.927 20,693 From Chevez Compony\'s Accounting Records Cash Receipts Deposited Sept 5 25

Solution

Answer 1. CHAVEZ COMPANY Bank Recocilation Sep 30, 2015 Bank\'s Cash Balance Company\'s Cash Balance Per Bank Statement          20,693.00 Per General Ledger      19,586.00 Add: Add: Deposit of Sep 30, not recorded by bank            1,786.00 Proceeds of note collected by bank             1,630.00 Bank Interest Recd                   16.00         1,646.00          22,479.00      21,232.00 Less: Less: Outstanding Checks: Bank Service Charges - Note Collected                (19.00) Chq No 5893                (488.00) Error in recording check No. 5904 - ($2,047 - $2,090)                (43.00) Chq No 5906            (1,033.00) NSF Check              (607.00)          (669.00) Chq No 5908                (395.00)          (1,916.00) Bank Balance after Reconcilation          20,563.00 Company Balance per Reconcilation      20,563.00 Answer 2. CHAVEZ COMPANY Journal Entry Date Particulars Dr. Amt.   Cr. Amt. 30-Sep Cash                                                                  Dr.            16.00    To Interest Earned          16.00 (To Record Interest Earned) 30-Sep Cash                                                                 Dr.      1,611.00 Collection Expenses                                 Dr.            19.00    To Notes Receivables    1,630.00 (To record note collection less fees) 30-Sep Accounts Rec. - S Nilson                         Dr.          607.00    To Cash       607.00 (To Charge account for NSF check plus fee) 30-Sep Computer Equipment                             Dr.            43.00     To Cash          43.00 (To correct an entry error) No entry is Recorded for 1 Deposit in Transit 2 Outstanding Checks 3 Bank errors