An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation August 31 Cash balance according to company's records Add: Outstanding checks Error by Chesner Co. in recording Check $6,120 $2,940 No. 1056 as $820 instead of $280 540 Note for $9,600 collected by bank, including interest 9,980 13,460 $19,580 Deduct: Deposit in transit on August 31 Bank service charges $6,230 50 6,280 Cash balance according to bank statement $13,300 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 Adjusted balance Cash balance according to company's records Adjusted balance b. If a balance sheet were prepared for Muskegon Co. on May 31, 2016, what amount should be reported for cash?