ACCT 151-If a balance sheet were prepared for Chesner Co. on July 31

Subject: Business    / Accounting
Question

B. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?
An accounting clerk for Chesner Co. prepared the following bank reconciliation:
Chesner Co.
Bank Reconciliation
July 31, 2016
1    Cash balance according to company’s records        $11,214.00
2    Add: Outstanding checks    $3,305.00
3    Error by Chesner Co. in recording Check No. 1056 as $730 instead of $370    360.00
4    Note for $11,200 collected by bank, including interest    11,648.00    15,313.00
5            $26,527.00
6    Deduct: Deposit in transit on July 31    $8,491.00
7    Deduct: Bank service charges    10.00    8,501.00
8    Cash balance according to bank statement        $18,026.00

A.    From the data prepared by the accounting clerk, prepare a new bank reconciliation for Chesner Co., using the format shown in the illustrative problem in the text. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. (Note: “Deduct:” or “Add:” will automatically appear if it is required.)
B.    If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?

• Adjusted balance • Bank error in charging Check No. 1056 as $370 instead of $730 • Bank error in charging Check No. 1056 as $730 instead of $370 • Bank service charges • Deposit in transit on July 31 • Error in recording Check No. 1056 as $370 instead of $730 • Error in recording Check No. 1056 as $730 instead of $370 • Note for $11,200 collected by bank, including interest • Outstanding checks

A. From the data prepared by the accounting clerk, prepare a new bank reconciliation for Chesner Co., using the format shown in the illustrative problem in the text. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. (Note:“Deduct:” or“Add:” will automatically appear if it is required.)
CHESNER CO.
Bank Reconciliation
July 31, 2016
1    Cash balance according to bank statement
2
3
4
5
6
7    Cash balance according to company’s records
8
9
10
11
12

Final Question:

B. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?