Bank reconciliation

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

Cash balance according to company's records		$4,970
Adjustments:
Outstanding checks	$2,390
Error by Chesner Co. in recording Check
No. 1056 as $830 instead of $380	450
Note for $7,800 collected by bank, including interest	8,110
Deposit in transit on July 31	(5,060)
Bank service charges	(60)
Total adjustments		5,830
Cash balance according to bank statement		$10,800

Question Content Area

a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., use the format shown in the Let's Review section. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Line Item Description	Amount	Amount
Cash balance according to bank statement		$Cash balance according to bank statement
Add: Deposit in transit on July 31Deduct: Deposit in transit on July 31Add: Error in recording Check No. 1056 as $830 instead of $380Deduct: Error in recording Check No. 1056 as $830 instead of $380Add: Note for $7800 collected by bank, including interestDeduct: Note for $7800 collected by bank, including interestAdd: Deposit in transit on July 31	blank	Add: Deposit in transit on July 31
Add: Error in recording Check No. 1056 as $830 instead of $380Deduct: Error in recording Check No. 1056 as $830 instead of $380Add: Bank service chargesDeduct: Bank service chargesAdd: Outstanding checksDeduct: Outstanding checksDeduct: Outstanding checks	blank	Deduct: Outstanding checks
Adjusted balance		$Adjusted balance
Cash balance according to company's records		$Cash balance according to company's records
Add: Deposit in transit on July 31Deduct: Deposit in transit on July 31Add: Error in recording Check No. 1056 as $830 instead of $380Deduct: Error in recording Check No. 1056 as $830 instead of $380Add: Outstanding checksDeduct: Outstanding checksAdd: Error in recording Check No. 1056 as $830 instead of $380	$Add: Error in recording Check No. 1056 as $830 instead of $380
Add: Deposit in transit on July 31Deduct: Deposit in transit on July 31Add: Outstanding checksDeduct: Outstanding checksAdd: Note for $7,800 collected by bank, including interestDeduct: Note for $7,800 collected by bank, including interestAdd: Note for $7,800 collected by bank, including interest	Add: Note for $7,800 collected by bank, including interest	blank
Total additions	blank	Total additions
Add: Error in recording Check No. 1056 as $830 instead of $380Deduct: Error in recording Check No. 1056 as $830 instead of $380Add: Note for $7800 collected by bank, including interestDeduct: Note for $7800 collected by bank, including interestAdd: Bank service chargesDeduct: Bank service chargesDeduct: Bank service charges	blank	Deduct: Bank service charges
Adjusted balance