An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation August 31 $5,430 Cash balance according to company's records Add: Outstanding checks Error by Chesner Co. in recording Check $2,610 No. 1056 as $710 instead of $170 540 Note for $8,500 collected by bank, including interest 8,840 11,990 $17,420 Deduct: Deposit in transit on August 31 $5,530 Bank service charges 60 5,590 Cash balance according to bank statement $11,830 a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the illustrative problem. Chaana Bank Reconciliation August 31 $ 11,830 Cash balance according to bank statement Add deposit in transit on August 31 5,530 Deduct outstanding checks 2,610 Adjusted balance 14,750 5,430 Cash balance according to company's records Add error in recording Check No. 1056 as $710 instead of $170 540 Add note for $8,500 collected by bank, including interest 8,500 11,990 x Deduct bank service charges 60 Adjusted balance 11,830 X Feedback Check My Work 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. F 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 Muskegon Co. on May 31, 2016, what amount should be reported for cash? $ 11,830 X