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 $6,980 $3,350 Error by Chesner Co. in recording Check No. 1056 as $830 instead of $380 450 Note for $11,000 collected by bank, including interest 11,440 15,240 $22,220 Deduct: Deposit in transit on August 31 Bank service charges $7,110 70 7,180 Cash balance according to bank statement $15,040 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 Add deposit in transit on August 31 Deduct outstanding checks Adjusted balance 15,040 7,110 3,350 18,800 Cash balance according to company's records Add error in recording Check No. 1056 as $830 instead of $380 Add note for $11,000 collected by bank, including interest Deduct bank service charges Adjusted balance 6,980 450 11,440 11,440 70 11,370 b. If a balance sheet were prepared for Muskegon Co. on May 31, 2016, what amount should be reported for cash?