Bank reconciliationAn accounting clerk for Chesner Co. prepared the following bank reconciliation:Refer to the image attached a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the formal shown in the Let’s Review section.b. If a balance sheet were prepared for Chesner Co. on July 31, 20Y4, what amount should be reported for cash? Chesner Co. Bank Reconciliation July 31,20Y4Cash balance according to company's records$18,520Adjustments:Outstanding checks$ 4,780Error by Chesner Co. in recording Check90No. 1056 as $875 instead of $785Note for $ 15.000 collected by bank, including15,600interestDeposit in transit on July 31(11,300)Bank service charges(45)Total adjustments9,125Cash balance according to bank statement$27,645

Bank Reconciliation statement is a statement which is prepared to reconcile cash balance as per…

Answered: Chesner Co. Bank Reconciliation July…

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:

Refer to the image attached

a. From the data in this bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the formal shown in the Let’s Review section.

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

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
90
No. 1056 as $875 instead of $785
Note for $ 15.000 collected by bank, including
15,600
interest
Deposit in transit on July 31
(11,300)
Bank service charges
(45)
Total adjustments
9,125
Cash balance according to bank statement
$27,645

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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