Els Company most recently reconciled its bank statement?

Els Company most recently reconciled its bank statement and book balances of cash on August 31
and it reported two checks outstanding, No. 5888 for $1,038.05 and No. 5893 for $484.25. The following
information is available for its September 30, 2005, reconciliation:
ELS COMPANY

August 31 bank reconciliation:
Outstanding checks:
No. 5888 1,038.05
No. 5893 495.95

From the September 30 bank statement:

September 30 Bank Statement:

Previous balance 16,800.45
Total Checks and Debits 9,620.05
Total Deposits and Credits 11,182.85
Current Balance 18,363.25

Checks and Debits Daily Balance
Date Check Amount Date Amount
09/03 5888 1,038.05 8/31 16,800.45
09/04 5902 731.90 9/3 15,762.40
09/07 5901 1,824.25 9/4 15,030.50
09/17 NSF 588.25 9/5 16,134.25
09/20 5905 937.00 9/7 14,310.00
09/22 5903 399.10 9/12 16,536.90
09/22 5904 2,080.00 9/17 16,948.65
09/28 5907 213.85 9/20 15,011.65
09/29 5909 1,807.65 9/21 19,104.65
9/22 1,625.55
9/25 18,977.25
Deposits and Credits 9/28 18,763.40
Date Description Amount 9/29 16,955.75
09/05 Deposit 1,103.75 9/30 18,363.25
09/12 Deposit 2,226.90
09/21 Deposit 4,093.00
09/25 Deposit 2,351.70
09/30 Interest 2,250.00
09/30 Credit memo 1,385.00

From Els Company's Accounting Records:

Cash Receipts Deposited: Cash Disbursements:

Date Cash Debit Check No. Cash Credit
Sept. 5 1,103.75 5901 1,824.25
12 2,226.90 5902 731.90
21 4,093.00 5903 399.10
25 2,351.70 5904 2,050.00
30 1,582.75 5905 937.00
11,358.10 5906 859.30
5907 213.85
5908 276.00
5909 1,807.65
9,099.05

Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Aug. 31 Balance 15,278.15
Sept. 30 Total receipts 11,358.10 26,636.25
30 Total disbursements 9,099.05 17,537.20

Check No. 5904 for computer equipment:
Entered in accounting records 2,050.00
Correct amount of check 2,080.00

Collection of Note:
Credit memorandum from bank 1,400.00
Bank collection fee 15.00

Check figures:
(1) Reconciled balance $18,326
(2) Credit Note Receivable 1,400

Check No. 5904 is correctly drawn for $2,080 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 $2,050. 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 $1,400 note for Els
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, 2005, bank reconciliation for this company.
2. Prepare the journal entries to adjust the book balance of cash to the reconciled balance.
Analysis Component
3. The bank statement reveals that some of the prenumbered checks in the sequence are missing.
Describe three situations that could explain this.

To prepare the September 30, 2005, bank reconciliation for Els Company, we need to compare the bank statement and the company's accounting records to identify any discrepancies and make necessary adjustments. Here's how you can do it step by step:

1. Compare the outstanding checks:
- From the August 31 bank reconciliation, two checks were outstanding: No. 5888 for $1,038.05 and No. 5893 for $495.95.
- Verify if these checks appear in the September 30 bank statement. If they are not listed, they should be added to the outstanding checks list.

2. Calculate the adjusted bank balance:
- Start with the previous balance from the bank statement: $16,800.45.
- Deduct the total checks and debits listed in the bank statement for September 2005: $9,620.05.
- Add the total deposits and credits listed in the bank statement for September 2005: $11,182.85.
- The adjusted bank balance should be $18,363.25.

3. Compare the company's accounting records:
- Review the cash receipts deposited and cash disbursements recorded in the company's records.
- Calculate the total receipts and total disbursements for September 2005.
- Subtract the total disbursements from the total receipts to get the adjusted book balance.

4. Compare the adjusted book balance and adjusted bank balance:
- Compare the adjusted book balance and the adjusted bank balance to identify any remaining discrepancies.

5. Make necessary adjustments:
- Identify any items that have not been recorded in the company's accounting records, such as the NSF check return, the credit memorandum for collection of a note, and bank collection fee.
- Prepare journal entries to adjust the book balance of cash to match the reconciled balance.

Now, let's move on to the analysis component:

3. Situations that could explain the missing prenumbered checks:
- Theft or fraud: The checks may have been stolen or misused by someone within the company or externally.
- Data entry errors: The checks may have been recorded incorrectly or skipped accidentally during data entry.
- Voided or canceled checks: The missing checks may have been voided or canceled due to errors or changes in transactions.

Note: To complete the bank reconciliation and provide the exact amounts, please provide the final list of outstanding checks and any additional information or data available.