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 $11,100.00
2. Add: Outstanding checks $3,585.00
3. Error by Chesner Co. in recording Check No. 1056 as $950 instead of $590 360.00
4. Note for $12,000 collected by bank, including interest 12,480.00 16,425.00
5. $27,525.00
6. Deduct: Deposit in transit on July 31 $7,200.00
7. Deduct: Bank service charges 25.00 7,225.00
8. Cash balance according to bank statement $20,300.00

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.