Bank Reconciliation

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

Cash balance according to the company's records at July $31,$$$23,600.$

Cash balance according to the bank statement at July $31,$$$24,870.$

Checks outstanding, $$4,790.$

Deposit in transit, not recorded by bank, $$3,850.$

A check for $$480$ issued in payment of an account was erroneously recorded in the check register as $$840.$

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

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

Nakajima Co$.$

Bank Reconciliation

July $31$

Cash balance according to bank statement $

Adjusted balance

$

Cash balance according to company's records $

Adjusted balance