Question

Bank Reconciliation

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			$4,840
Adjustments:
Outstanding checks	$2,320
Error by Chesner Co. in recording Check
No. 1056 as $940 instead of $490	450
Note for $7,600 collected by bank, including interest	7,900
Deposit in transit on July 31	(4,930)
Bank service charges	(70)
Total adjustments			5,670
Cash balance according to bank statement			$10,510

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, 20Y4
Cash balance according to bank statement		$fill in the blank 39caf908701b018_1
Add: Error in recording Check No. 1056 as $940 instead of $490		fill in the blank 39caf908701b018_3
		fill in the blank 39caf908701b018_5
Adjusted balance		$fill in the blank 39caf908701b018_6
Cash balance according to company's records		$fill in the blank 39caf908701b018_7
	$fill in the blank 39caf908701b018_9
	fill in the blank 39caf908701b018_11
Total additions		fill in the blank 39caf908701b018_12
		fill in the blank 39caf908701b018_14
Adjusted balance		$fill in the blank 39caf908701b018_15

b. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash?
$fill in the blank 3390240e2056fb9_1

Answer 1

(a)
Chesner Co. Bank Reconciliation July 31, 20Y4
Cash Balance according to Bank Statement		$ 10,510
Add: Deposit in Transit on July 31		$ 4,930
Less: Outstanding checks		($ 2,320)
Adjusted Balance		$ 13,120
Cash Balance according to Company's records		$ 4,840
Add: Error in recording check No. 1056 as $ 940 instead of $ 490	$ 450
Add: Note for $ 7,600 Collected by Bank, including Interest	$ 7,900
Total Additions		$ 8,350
Less: Bank Service charges		($ 70)
Adjusted Balance		$ 13,120
(b)
Amount reported for Cash = $ 13,120