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Argosy University/ Phoniex University/
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Phoniex University
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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 |
| Â | Â |
$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?
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