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			$6,640
   Add: Outstanding checks	$3,190
   Error by Chesner Co. in recording Check
   No. 1056 as $940 instead of $490	450
   Note for $10,400 collected by bank, including interest	10,820		14,460
   			$21,100
   Deduct: Deposit in transit on August 31	$6,760
   Bank service charges	40		6,800
   Cash balance according to bank statement			$14,300

   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? $