EX 7-21 Bank reconciliation
An accounting clerk for Chesner Co. prepared the following bank reconciliation:
|
Cash balance according to company’s records |
$11,100 |
|
|
Add: Outstanding checks |
$ 3,585 |
|
|
Error by Chesner Co. in recording Check |
||
|
No. 1056 as $950 instead of $590 |
360 |
|
|
Note for $12,000 collected by bank, including interest |
12,480 |
16,425 |
|
Deduct: Deposit in transit on July 31 |
$ 7,200 |
$27,525 |
|
Bank service charges |
25 |
|
|
Cash balance according to bank statement |
7,225 |
|
|
$20,300 |
a. From the data in the above bank reconciliation, prepare a new bank reconciliation for Chesner Co., using the format shown in the illustrative problem.
b. If a balance sheet were prepared for Chesner Co. on July 31, 2014, what amount should be reported for cash?