Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31 $24,000. 2. Cash balance according to the bank statement at July 31, $25,360. 3. Checks outstanding, $4,870. 4. Deposit in transit, not recorded by bank, $3,910. 5. A check for $270 in payment of an account was erroneously recorded in the check register as $720. 6. Bank debit memo for service charges, $50. a. Prepare a bank reconciliation, using the format shown in Exhibit 14. Mathers Co. Bank Reconciliation July 31 Cash balance according to bank statement Add deposit in transit, not recorded by bank Deduct outstanding checks Adjusted balance Cash balance according to company's records Add error in recording check $720 instead of $270 Deduct bank service charge DUITUDIO Adjusted balance Feedback Check My Work a. Set up two columns: one for the company cash account section and the other for the bank balance section. Determine the effect of Adjusted balance Feedback Check My Work a. Set up two columns: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each column. Recall that when you a finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an Item has been overlooked or treated in error. b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)? Yes