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 $6,070Adjustments: Outstanding checks$2,910 Error by Chesner Co. in recording Check No. 1056 as $710 instead of $170540 Note for $9,500 collected by bank, including interest9,880 Deposit in transit on July 31(6,180) Bank service charges(50) Total adjustments 7,100Cash balance according to bank statement $13,170a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., use the format shown in the Let’s Review section. For those boxes in which you must enter subtracted or negative numbers use a minus sign.b. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash?$fill in the blank

A bank reconciliation statement is a summary of banking and business activity that reconciles the…

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		$6,070
Adjustments:
Outstanding checks	$2,910
Error by Chesner Co. in recording Check
No. 1056 as $710 instead of $170	540
Note for $9,500 collected by bank, including interest	9,880
Deposit in transit on July 31	(6,180)
Bank service charges	(50)
Total adjustments		7,100
Cash balance according to bank statement		$13,170

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.

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

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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