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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 company's records $7,010 Add:

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

Chesner Co.
Bank Reconciliation
August 31
Cash balance according to company's records $7,010
Add: Outstanding checks $3,360
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 15,250
$22,260
Deduct: Deposit in transit on August 31 $7,140
Bank service charges 60 7,200
Cash balance according to bank statement $15,060

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 61c0d9fb4fc2fd0_1

Add deposit in transit on August 31Add error in recording Check No. 1056 as $830 instead of $380Add note for $11,000 collected by bank, including interestAdd outstanding checks

- Select -

Deduct bank service chargesDeduct deposit in transit on August 31Deduct error in recording Check No. 1056 as $830 instead of $380Deduct outstanding checks

- Select -
Adjusted balance $fill in the blank 61c0d9fb4fc2fd0_6
Cash balance according to company's records $fill in the blank 61c0d9fb4fc2fd0_7

Add bank service chargesAdd deposit in transit on August 31Add error in recording Check No. 1056 as $830 instead of $380Add outstanding checks

$- Select -

Add bank service chargesAdd deposit in transit on August 31Add note for $11,000 collected by bank, including interestAdd outstanding checks

- Select - - Select -

Deduct bank service chargesDeduct error in recording Check No. 1056 as $830 instead of $380Deduct note for $11,000 collected by bank, including interestDeduct outstanding checks

- Select -
Adjusted balance $fill in the blank 61c0d9fb4fc2fd0_15

Question Content Area

b. If a balance sheet were prepared for Muskegon Co. on May 31, 2016, what amount should be reported for cash?

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