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

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 $8,000 Adjustments Outstanding checks $3,840 Error by Chesner Co. in recording Check No. 1056 as $830 instead of $380 Note for $12,600 collected by bank, including interest Deposit in transit on July 31 Bank service charges 450 13,100 (8,140) Total adjustments 9,220 Cash balance according to bank statement $17,220 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 Cash balance according to bank statement Adjustments Total adjustments Adjusted balance

Explanation / Answer

Cash Balance according to Bank Statement

17220

Adjustments:-

Outstanding check

-3840

Deposit in Transit

8140

Total Adjustments

4300

Adjusted Balance

21520

Cash Balance according to Company record

8000

Error in recording check no 1056

450

Note including int collect by bank

13100

Bank Service charge

-30

Total Adjustments

13520

Adjusted Balance

21520

(b) Cash Balance reported in Balance Sheet on july 31, 2014 = 21520

Cash Balance according to Bank Statement

17220

Adjustments:-

Outstanding check

-3840

Deposit in Transit

8140

Total Adjustments

4300

Adjusted Balance

21520

Cash Balance according to Company record

8000

Error in recording check no 1056

450

Note including int collect by bank

13100

Bank Service charge

-30

Total Adjustments

13520

Adjusted Balance

21520

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