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 a$$cording to bank statement

Add: Deposit in transit on July $31$

Deduct: Outstanding checks $$

Adjusted balance

Cash balance according to company's records

Add: Error in recording Check No$.1056$ as $$875$ instead of $$785$

Add: Note for $$15,000$ collected by bank, including interest

Total additions

Deduct: Bank service charges

Adjusted balance

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Check My Work

a$.$ Set up two sections: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each section Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error.

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