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			$6,400
Add: Outstanding checks	$3,070
Error by Chesner Co. in recording Check
No. 1056 as $940 instead of $490	450
Note for $10,000 collected by bank, including interest	10,400		13,920
			$20,320
Deduct: Deposit in transit on August 31	$6,520
Bank service charges	30		6,550
Cash balance according to bank statement			$13,770

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

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