Question

The Chavez company most recently reconciled its bank statement and book balances of cas on august 31 and it reported two checks outstanding. Number 5888 for $1013 and Check Number 5893 for $492. Check Number was still outstanding as of September 30

Answer 1

The question involves financial accounting, specifically bank reconciliation concerning outstanding checks for the Chavez company.

Step-by-step explanation:

The question concerns the reconciliation process of the Chavez company's bank statement and book balances as of August 31, which involves identifying outstanding checks that have not yet cleared the bank. Check Number 5888 for $1013 and Check Number 5893 for $492 were initially reported as outstanding. It is implied that there is a continuation to this scenario, possibly concerning the status of these checks as of September 30, which is commonly part of financial accounting practices in business.

When a company reconciles its bank statement with its book balances, it is comparing the transactions recorded in its books with the transactions recorded by the bank. In this case, the Chavez company reported two checks outstanding, numbered 5888 for $1013 and 5893 for $492. As of September 30, Check Number 5893 was still outstanding.

This type of reconciliation is important to ensure the accuracy of a company's financial records and to identify any discrepancies or errors. It helps to reconcile the differences between the company's recorded transactions and the bank's recorded transactions.