Bank Reconciliation An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation July 31, 2014 $5,180 Cash balance according to company's records Adjustments: Outstanding checks $2,490 Error by Chesner Co. in recording Check No. 1056 as $830 instead of $380 450 Note for $8,100 collected by bank, including interest 8,420 Deposit in transit on July 31 (5,270) Bank service charges (60) Total adjustments 6,030 Cash balance according to bank statement $11,210 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. which you must enter subtracted or negative numbers use a minus sign. Chesner Co. Bank Reconciliation July 31, 2014 Cash balance according to bank statement $ 11,310 X 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 $8,100 collected by bank, including interest Total additions Deduct: Bank service charges $ Adjusted balance Feedback Check My Work a. Set up two sections: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each section. 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. b. If a balance sheet were prepared for Chesner Co. on July 31, 2014, what amount should be reported for cash? 14,090 X