4.1 Bank Reconciliation

The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July:

1. Cash balance according to the company's records at July 31, $14,520.

2. Cash balance according to the bank statement at July 31, $15,160.

3. Checks outstanding, $2,950.

4. Deposit in transit, not recorded by bank, $2,370.

5. A check for $340 issued in payment of an account was erroneously recorded in the check register as $430.

6. Bank debit memo for service charges, $30.

Prepare a bank reconciliation, using the format shown in Exhibit 12.

Nakajima Co. Bank Reconciliation July 31

Cash balance according to bank statement	$__________
a. Add bank service charge b. Add deposit in transit, not recorded by bank c. Add error in recording check $430 instead of $340 d. Add outstanding checks e. Deduct deposit in transit, not recorded by bank	_________
a. Add bank service charge b. Add deposit in transit, not recorded by bank c. Add error in recording check $430 instead of $340 d. Add outstanding checks e. Deduct deposit in transit, not recorded by bank	_______
Adjusted balance	$________
Cash balance according to company's records	$________
a. Add bank service charge b. Add deposit in transit, not recorded by bank c. Add error in recording check $430 instead of $340 d. Add outstanding checks e. Deduct deposit in transit, not recorded by bank	_______
a. Add bank service charge b. Add deposit in transit, not recorded by bank c. Add error in recording check $430 instead of $340 d. Add outstanding checks e. Deduct deposit in transit, not recorded by bank	_______
Adjusted balance	$________