An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation July 31, 20Y4 1 Cash balance according to company’s records $10,639.00 2 Adjustments: 3 Outstanding checks $3,670.00 4 Error by Chesner Co. in recording Check No. 1056 as $730 instead of $370 360.00 5 Note for $12,700 collected by bank, including interest 13,208.00 6 Deposit in transit on July 31 (6,001.00) 7 Bank service charges (20.00) 8 Total adjustments 11,217.00 9 Cash balance according to bank statement $21,856.00 A. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the Let’s Review section. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. B. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash? Amount Descriptions Amount Descriptions Adjusted balance Bank error in charging Check No. 1056 as $370 instead of $730 Bank error in charging Check No. 1056 as $730 instead of $370 Bank service charges Deposit in transit on July 31 Error in recording Check No. 1056 as $370 instead of $730 Error in recording Check No. 1056 as $730 instead of $370 Note for $12,700 collected by bank, including interest Outstanding checks Total adjustments Bank Reconciliation A. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the Let’s Review section. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Chesner Co. Bank Reconciliation July 31, 20Y4

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

1	Cash balance according to company’s records		$10,639.00
2	Adjustments:
3	Outstanding checks	$3,670.00
4	Error by Chesner Co. in recording Check No. 1056 as $730 instead of $370	360.00
5	Note for $12,700 collected by bank, including interest	13,208.00
6	Deposit in transit on July 31	(6,001.00)
7	Bank service charges	(20.00)
8	Total adjustments		11,217.00
9	Cash balance according to bank statement		$21,856.00

A.	From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the Let’s Review section. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
B.	If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash?

Amount Descriptions

Amount Descriptions
Adjusted balance
Bank error in charging Check No. 1056 as $370 instead of $730
Bank error in charging Check No. 1056 as $730 instead of $370
Bank service charges
Deposit in transit on July 31
Error in recording Check No. 1056 as $370 instead of $730
Error in recording Check No. 1056 as $730 instead of $370
Note for $12,700 collected by bank, including interest
Outstanding checks
Total adjustments

Bank Reconciliation

A. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the Let’s Review section. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Chesner Co.

Bank Reconciliation

July 31, 20Y4

1	Cash balance according to bank statement
2	Adjustments:
3
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5
6
7
8	Cash balance according to company’s records
9	Adjustments:
10
11
12
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Final Question

B. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash?

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