An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation August 31 $6,160 Cash balance according to company's records Add: Outstanding checks Error by Chesner Co. in recording Check $2,960 No. 1056 as $820 instead of $280 540 Note for $9,700 collected by bank, including interest 10,090 13,590 $19,750 Deduct: Deposit in transit on August 31 $6,270 Bank service charges 6,330 Cash balance according to bank statement $13,420 a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the illustrative problem. 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