8.7

$5,480 $2,630 Cash balance according to company's records Add: Outstanding checks Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 Note for $8,600 collected by bank, including interest 540 8,940 12,110 $17,590 $5,580 Deduct: Deposit in transit on August 31 Bank service charges Cash balance according to bank statement 70 5,650 $11,940 a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown Chesner Co. Bank Reconciliation August 31 Cash balance according to bank statement Add deposit in transit on August 31 Deduct outstanding checks Adjusted balance Cash balance according to company's records Add error in recording Check No. 1056 as $820 instead of $280 Add note for $8,600 collected by bank, including interest DDI duud Deduct bank service charges Adjusted balance Feedback b. If a balance sheet were prepared for Muskegon Co. on May 31, 2016, what amount should be reported for cash? s