An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation August 31 Cash balance according to company's records $4,930 Add: Outstanding checks $2,370 Error by Chesner Co. in recording Check No. 1056 as $940 instead of $490 450 Note for $7,700 collected by bank, including interest 8,010 10,830 $15,760 Deduct: Deposit in transit on August 31 $5,020 Bank service charges 70 5,090 Cash balance according to bank statement $10,670 a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the illustrative problem. Chesner Co. Bank Reconciliation August 31 Cash balance according to bank statement $fill in the blank b6151a03afd9f84_1 fill in the blank b6151a03afd9f84_3 fill in the blank b6151a03afd9f84_5 Adjusted balance $fill in the blank b6151a03afd9f84_6 Cash balance according to company's records $fill in the blank b6151a03afd9f84_7 $fill in the blank b6151a03afd9f84_9 fill in the blank b6151a03afd9f84_11 fill in the blank b6151a03afd9f84_12 fill in the blank b6151a03afd9f84_14 Adjusted balance $fill in the blank b6151a03afd9f84_15 b. If a balance sheet were prepared for Muskegon Co. on May 31, 2016, what amount should be reported for cash? $fill in the blank adb4ad0c1013fb7_1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Bank Reconciliation

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

Chesner Co.
Bank Reconciliation
August 31
Cash balance according to company's records		$4,930
Add: Outstanding checks	$2,370
Error by Chesner Co. in recording Check
No. 1056 as $940 instead of $490	450
Note for $7,700 collected by bank, including interest	8,010	10,830
		$15,760
Deduct: Deposit in transit on August 31	$5,020
Bank service charges	70	5,090
Cash balance according to bank statement		$10,670

a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the illustrative problem.

Chesner Co.
Bank Reconciliation
August 31
Cash balance according to bank statement		$fill in the blank b6151a03afd9f84_1
		fill in the blank b6151a03afd9f84_3
		fill in the blank b6151a03afd9f84_5
Adjusted balance		$fill in the blank b6151a03afd9f84_6
Cash balance according to company's records		$fill in the blank b6151a03afd9f84_7
	$fill in the blank b6151a03afd9f84_9
	fill in the blank b6151a03afd9f84_11	fill in the blank b6151a03afd9f84_12
		fill in the blank b6151a03afd9f84_14
Adjusted balance		$fill in the blank b6151a03afd9f84_15

b. If a balance sheet were prepared for Muskegon Co. on May 31, 2016, what amount should be reported for cash?
$fill in the blank adb4ad0c1013fb7_1

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions