Question

An accounting clerk for Chesner Co. prepared the following bank reconciliation:

Chesner Co.
Bank Reconciliation
July 31, 20Y4
Cash balance according to company's records			$5,830
Adjustments:
Outstanding checks	$2,800
Error by Chesner Co. in recording Check
No. 1056 as $830 instead of $380	450
Note for $9,200 collected by bank, including interest	9,570
Deposit in transit on July 31	(5,930)
Bank service charges	(30)
Total adjustments			6,860
Cash balance according to bank statement			$12,690

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

Chesner Co.
Bank Reconciliation
July 31, 20Y4
Cash balance according to bank statement		$
Adjustments:
	$
Total adjustments
Adjusted balance		$
Cash balance according to company's records		$
	$
Total adjustments
Adjusted balance		$

b. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash?
$

Answer 1

a)

Chesner Co
Bank Reconciliation
July 31, 20Y4
Cash balance according to bank statement		$ 12,690
Adjustments
Deposit in transit	$   5,930
Outstanding checks	$ (2,800)
Total adjustments		$    3,130
Adjusted cash balance		$ 15,820
Cash balance according to company's records		$    5,830
Adjustments
Error in recording of check	$       450
Not collected by bank	$   9,570
Bank service charge	$       (30)
Total adjustments		$    9,990
Adjusted cash balance		$ 15,820

B.

$15,820 will report as cash in balance sheet

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