An accounting clerk for Chesner Co prepared the following bank reconciliation Chesner Co Bank Reconciliation August 31 Cash balance according to companys records $11,100 Add Outstanding checks $3,585 Error by Chesner Co in recording Check No 1056 as $950 instead of $590 360 Note for $12,000 collected by bank, including interest 12,480 16,425 $27,525 Deduct Deposit in transit on August 31 $7,200 Bank service charges 25 7,225 Cash balance according to bank statement $20,300 Question Content Area a From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co , using the format shown in the Exhibit 12 Chesner Co Bank Reconciliation August 31 Cash balance according to bank statement $fill in the blank ce806b02af8cfe8 1 Add bank service chargesAdd deposit in transit on August 31Add note for $12,000 collected by bank, including interestAdd outstanding checksAdd deposit in transit on August 31 Add deposit in transit on August 31 Deduct bank service chargesDeduct deposit in transit on August 31Deduct error in recording Check No 1056 as $950 instead of $590Deduct outstanding checksDeduct outstanding checks Deduct outstanding checks Adjusted balance $fill in the blank ce806b02af8cfe8 6 Cash balance according to company's records $fill in the blank ce806b02af8cfe8 7 Add bank service chargesAdd deposit in transit on August 31Add error in recording Check No 1056 as $950 instead of $590Add outstanding checksAdd error in recording Check No 1056 as $950 instead of $590 $Add error in recording Check No 1056 as $950 instead of $590 Add bank service chargesAdd deposit in transit on August 31Add note for $12,000 collected by bank, including interestAdd outstanding checksAdd note for $12,000 collected by bank, including interest Add note for $12,000 collected by bank, including interest Add note for $12,000 collected by bank, including interest Deduct bank service chargesDeduct error in recording Check No 1056 as $950 instead of $590Deduct note for $12,000 collected by bank, including interestDeduct outstanding checksDeduct bank service charges Deduct bank service charges Adjusted balance $fill in the blank ce806b02af8cfe8 15 Feedback Area Feedback a Set up two columns one for the company cash account section and the other for the bank balance section Determine the effect of the data on each column 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 Question Content Area b If a balance sheet is prepared for Chesner Co on August 31, what amount should be reported for cash

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An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation August 31 Cash balance according to companys records $11,100 Add:

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

Chesner Co.
Bank Reconciliation
August 31
Cash balance according to companys records		$11,100
Add: Outstanding checks	$3,585
Error by Chesner Co. in recording Check
No. 1056 as $950 instead of $590	360
Note for $12,000 collected by bank, including interest	12,480	16,425
		$27,525
Deduct: Deposit in transit on August 31	$7,200
Bank service charges	25	7,225
Cash balance according to bank statement		$20,300

Question Content Area

a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the Exhibit 12.

Chesner Co. Bank Reconciliation August 31
Cash balance according to bank statement		$fill in the blank ce806b02af8cfe8_1
Add bank service chargesAdd deposit in transit on August 31Add note for $12,000 collected by bank, including interestAdd outstanding checksAdd deposit in transit on August 31		Add deposit in transit on August 31
Deduct bank service chargesDeduct deposit in transit on August 31Deduct error in recording Check No. 1056 as $950 instead of $590Deduct outstanding checksDeduct outstanding checks		Deduct outstanding checks
Adjusted balance		$fill in the blank ce806b02af8cfe8_6
Cash balance according to company's records		$fill in the blank ce806b02af8cfe8_7
Add bank service chargesAdd deposit in transit on August 31Add error in recording Check No. 1056 as $950 instead of $590Add outstanding checksAdd error in recording Check No. 1056 as $950 instead of $590	$Add error in recording Check No. 1056 as $950 instead of $590
Add bank service chargesAdd deposit in transit on August 31Add note for $12,000 collected by bank, including interestAdd outstanding checksAdd note for $12,000 collected by bank, including interest	Add note for $12,000 collected by bank, including interest	Add note for $12,000 collected by bank, including interest
Deduct bank service chargesDeduct error in recording Check No. 1056 as $950 instead of $590Deduct note for $12,000 collected by bank, including interestDeduct outstanding checksDeduct bank service charges		Deduct bank service charges
Adjusted balance		$fill in the blank ce806b02af8cfe8_15

Feedback Area

Feedback

a. Set up two columns: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each column. 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.

Question Content Area

b. If a balance sheet is prepared for Chesner Co. on August 31, what amount should be reported for cash?