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, $14,560. 2. Cash balance according to the bank statement at July 31, $15,200. 3. Checks outstanding, $2,960. 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 5430 6. Bank debit memo for service charges, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement 2.370 X 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 $430 instead of $340 Deduct bank service charge Adjusted balance Feedback Check My Won in and the other for the bank balance sacan Datormethafect of the data on each com error in recording check $430 Instead of $340 ce from Cengage Deduct bank service charge 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 finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overed or read hemor b. If the balance sheet is prepared for Nakajima Co. on July p1, what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)? Yes Feedback Check My Work b. The reconciled adjusted balance at the end of an accounting period should be what is reported for cash on the balance show c. Consider the purpose of the bank reconciliation and what it does Feedback Check My Work Partially correct Preveu