1. 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			$8,370
   Add: Outstanding checks	$4,020
   Error by Chesner Co. in recording Check
   No. 1056 as $830 instead of $380	450
   Note for $13,100 collected by bank, including interest	13,620		18,090
   			$26,460
   Deduct: Deposit in transit on August 31	$8,520
   Bank service charges	70		8,590
   Cash balance according to bank statement			$17,870

   a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the illustrative problem.

   Chesner Co.
   Bank Reconciliation
   August 31
   Cash balance according to bank statement		$
   Adjusted balance		$
   Cash balance according to company's records		$
   	$
   Adjusted balance		$

   b. If a balance sheet were prepared for Muskegon Co. on May 31, 2016, what amount should be reported for cash? $

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