Bank Reconciliation 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 $6,640 Adjustments: Outstanding checks $3,190 Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 540 Note for $10,400 collected by bank, including interest 10,820 Deposit in transit on July 31 (6,760) Bank service charges (30) Total adjustments 7,760 Cash balance according to bank statement $14,400 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? $

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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Bank Reconciliation

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		$6,640
Adjustments:
Outstanding checks	$3,190
Error by Chesner Co. in recording Check
No. 1056 as $820 instead of $280	540
Note for $10,400 collected by bank, including interest	10,820
Deposit in transit on July 31	(6,760)
Bank service charges	(30)
Total adjustments		7,760
Cash balance according to bank statement		$14,400

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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