Entries for Note Collected by Bank Accompanying a bank statement for Borden Company is a credit memo for $21,315 representing the principal ($21,000) and interest ($315) on a note that had been collected by the bank. The company had been notified by the bank at the time of the collection but had made no entries. Journalize the entry that should be made by the company to bring the accounting records up to date. If an amount box does not require an entry, leave it blank. $5,570 Cash balance according to company's records Adjustments: Outstanding checks $2,670 Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 540 9,050 Note for $8,700 collected by bank, including interest Deposit in transit on July 31 (5,670) Bank service charges (40) Total adjustments 6,550 Cash balance according to bank statement $12,120 a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., use the format shown in the Let's Review section. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Chesner Co. Bank Reconciliation July 31, 2014 Cash balance according to bank statement Adjusted balance $ Cash balance according to company's records $ 9 Total additions Adjusted balance b. If a balance sheet were prepared for Chesner Co. on July 31. 2014. what amount should be reported for cash