Bank Reconciliation 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 $6,640 Adjustments: Outstanding checks $3,190 Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 540 Note for $10,400 collected by bank, including interest 10,820 Deposit in transit on July 31 (6,760) Bank service charges (30) Total adjustments 7,760 Cash balance according to bank statement $14,400 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 $ Adjusted balance $ Cash balance according to company's records $ $ Total additions Adjusted balance $ b. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash? $

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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Bank Reconciliation

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		$6,640
Adjustments:
Outstanding checks	$3,190
Error by Chesner Co. in recording Check
No. 1056 as $820 instead of $280	540
Note for $10,400 collected by bank, including interest	10,820
Deposit in transit on July 31	(6,760)
Bank service charges	(30)
Total adjustments		7,760
Cash balance according to bank statement		$14,400

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		$


Adjusted balance		$
Cash balance according to company's records		$
	$

Total additions

Adjusted balance		$

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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