Bank Reconciliation

August $31$

Cash balance according to company's records

Add: Outstanding checks

Error by Chesner $C_0.$ in recording Check

$$3,750$

No$.1056$ as $$820$ instead of $$280$

Note for $$12,300$ collected by bank, including interest

Deduct: Deposit in transit on August $31$

Bank service charges

Cash balance according to bank statement

a$.$ From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co$.,$ using the format shown in the Exhibit $12.$

Chesner Co$.$

Bank Reconciliation

August $31$

Cash balance according to bank statement

Add deposit in transit on August $31,$

Deduct outstanding checks

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?