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 $7,580 Add: Outstanding checks $3,640 Error by Chesner Co. in recording Check No. 1056 as $710 instead of $170 540 Note for $11,900 collected by bank, including interest 12,380 16,560 $24,140 Deduct: Deposit in transit on August 31 $7,720 Bank service charges 60 7,780 Cash balance according to bank statement $16,360 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?