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 $18,520Adjustments: Outstanding checks$4,780 Error by Chesner Co. in recording Check No. 1056 as $875 instead of $78590 Note for $15,000 collected by bank, including interest15,600 Deposit in transit on July 31(11,300) Bank service charges(45) Total adjustments 9,125Cash balance according to bank statement $27,645a. 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 ReconciliationJuly 31, 20Y4Cash balance according to bank statement $ Adjusted balance Cash balance according to company's records $ $ Total additions Adjusted balance $b. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash?$

Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from…

Answered: An accounting clerk for Chesner Co.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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		$18,520
Adjustments:
Outstanding checks	$4,780
Error by Chesner Co. in recording Check
No. 1056 as $875 instead of $785	90
Note for $15,000 collected by bank, including interest	15,600
Deposit in transit on July 31	(11,300)
Bank service charges	(45)
Total adjustments		9,125
Cash balance according to bank statement		$27,645

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		$


Adjusted balance
Cash balance according to company's records		$
	$

Total additions

Adjusted balance		$

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

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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