An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation July 31, 20Y4 Cash balance according to company's records $7,150 Adjustments: Outstanding checks $3,430 Error by Chesner Co. in recording Check No. 1056 as $830 instead of $380 450 Note for $11,200 collected by bank, including interest 11,650 Deposit in transit on July 31 (7,280) Bank service charges (40) Total adjustments 8,210 Cash balance according to bank statement $15,360 a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., use the format shown in the Let’s Review section. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Chesner Co. Bank Reconciliation July 31, 20Y4 Cash balance according to bank statement $fill in the blank acc4df036010fde_1 fill in the blank acc4df036010fde_3 fill in the blank acc4df036010fde_5 Adjusted balance $fill in the blank acc4df036010fde_6 Cash balance according to company's records $fill in the blank acc4df036010fde_7 $fill in the blank acc4df036010fde_9 fill in the blank acc4df036010fde_11 Total additions fill in the blank acc4df036010fde_12 fill in the blank acc4df036010fde_14 Adjusted balance $fill in the blank acc4df036010fde_15 b. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash? $fill in the blank b7316eff507bfef_1

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 21E

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An accounting clerk for Chesner Co. prepared the following bank reconciliation:

Chesner Co.
Bank Reconciliation
July 31, 20Y4
Cash balance according to company's records		$7,150
Adjustments:
Outstanding checks	$3,430
Error by Chesner Co. in recording Check
No. 1056 as $830 instead of $380	450
Note for $11,200 collected by bank, including interest	11,650
Deposit in transit on July 31	(7,280)
Bank service charges	(40)
Total adjustments		8,210
Cash balance according to bank statement		$15,360

a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., use the format shown in the Let’s Review section. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Chesner Co.
Bank Reconciliation
July 31, 20Y4
Cash balance according to bank statement		$fill in the blank acc4df036010fde_1
		fill in the blank acc4df036010fde_3
		fill in the blank acc4df036010fde_5
Adjusted balance		$fill in the blank acc4df036010fde_6
Cash balance according to company's records		$fill in the blank acc4df036010fde_7
	$fill in the blank acc4df036010fde_9
	fill in the blank acc4df036010fde_11
Total additions		fill in the blank acc4df036010fde_12
		fill in the blank acc4df036010fde_14
Adjusted balance		$fill in the blank acc4df036010fde_15

b. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash?
$fill in the blank b7316eff507bfef_1

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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