Bank Reconciliation

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

Chesner Co.
Bank Reconciliation
July 31, 20Y4
Cash balance according to company's records			$7,620
Adjustments:
Outstanding checks	$3,660
Error by Chesner Co. in recording Check
No. 1056 as $830 instead of $380	450
Note for $12,000 collected by bank, including interest	12,480
Deposit in transit on July 31	(7,760)
Bank service charges	(30)
Total adjustments			8,800
Cash balance according to bank statement			$16,420

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

Chesner Co.
Bank Reconciliation
July 31, 20Y4
Cash balance according to bank statement
Add: Deposit in transit on July 31
Deduct: Outstanding checks
Adjusted balance
Cash balance according to company's records
Add: Error in recording Check No. 1056 as $830 instead of $380
Add: Note for $12,000 collected by bank, including interest
Total additions
Deduct: Bank service charges
Adjusted balance