4.1 CNOW 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.

A. Prepare a bank reconciliation.

B. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash?

C. Must a bank reconciliation always balance (reconcile)?