Bank Reconciliation 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 $11,100 $3,585 Error by Chesner Co. in recording Check No. 1056 as $950 instead of $590 360 Note for $12,000 collected by bank, including interest 12,480 16,425 $27,525 Deduct: Deposit in transit on August 31 $7,200 Bank service charges 25 7,225 $20,300 Cash balance according to bank statement 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 Cash balance according to bank statement August 31 Chesner Co. Bank Reconciliation Cash balance according to bank statement Add deposit in transit on August 31 Deduct outstanding checks Adjusted balance August 31 Cash balance according to company's records Add error in recording Check No. 1056 as $950 instead of $590 Add note for $12,000 collected by bank, including interest Deduct bank service charges Adjusted balance 00000 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 Recall that when you are finished, 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 Feedback b. If a balance sheet is prepared for Chesner Co. on August 31, what amount should be reported for cash?)