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 $5,470

Adjustments:

Outstanding checks$2,630

Error by Chesner Co. in recording Check

No. 1056 as $710 instead of $170540

Note for $8,600 collected by bank, including interest8,940

Deposit in transit on July 31(5,570)

Bank service charges(40)

Total adjustments 6,500

Cash balance according to bank statement $11,970

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$

Adjusted balance$

Cash balance according to company's records$

$

Total additions

Adjusted balance$

b. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash? $