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     $6,580 Adjustments:          Outstanding checks $3,160        Error by Chesner Co. in recording Check            No. 1056 as $940 instead of $490 450        Note for $10,300 collected by bank, including interest 10,710        Deposit in transit on July 31 (6,700)        Bank service charges (40)           Total adjustments     7,580 Cash balance according to bank statement     $14,160 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   $fill in the blank b5a44b06801801d_1 Adjustments:     Deposit in transit on July 31  $fill in the blank b5a44b06801801d_3   Outstanding checks  fill in the blank b5a44b06801801d_5   Total adjustments   fill in the blank b5a44b06801801d_6 Adjusted balance   $fill in the blank b5a44b06801801d_7 Cash balance according to company's records   $fill in the blank b5a44b06801801d_8 Error in recording Check No. 1056 as $940 instead of $490  $fill in the blank b5a44b06801801d_10   Note for $10,300 collected by bank, including interest  fill in the blank b5a44b06801801d_12   Bank service charges  fill in the blank b5a44b06801801d_14   Total adjustments   fill in the blank b5a44b06801801d_15 Adjusted balance   $fill in the blank b5a44b06801801d_16   Feedback   a. Set up two sections: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each section. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error. Learning Objective 5. 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 c8a1c803e005010_1

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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     $6,580
Adjustments:      
   Outstanding checks $3,160    
   Error by Chesner Co. in recording Check      
     No. 1056 as $940 instead of $490 450    
   Note for $10,300 collected by bank, including interest 10,710    
   Deposit in transit on July 31 (6,700)    
   Bank service charges (40)    
      Total adjustments     7,580
Cash balance according to bank statement     $14,160

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   $fill in the blank b5a44b06801801d_1
Adjustments:    
Deposit in transit on July 31  $fill in the blank b5a44b06801801d_3  
Outstanding checks  fill in the blank b5a44b06801801d_5  
Total adjustments   fill in the blank b5a44b06801801d_6
Adjusted balance   $fill in the blank b5a44b06801801d_7
Cash balance according to company's records   $fill in the blank b5a44b06801801d_8
Error in recording Check No. 1056 as $940 instead of $490  $fill in the blank b5a44b06801801d_10  
Note for $10,300 collected by bank, including interest  fill in the blank b5a44b06801801d_12  
Bank service charges  fill in the blank b5a44b06801801d_14  
Total adjustments   fill in the blank b5a44b06801801d_15
Adjusted balance   $fill in the blank b5a44b06801801d_16
 
Feedback
 

a. Set up two sections: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each section. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error.

Learning Objective 5.

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 c8a1c803e005010_1

 



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