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,$32,110. 2. Cash balance according to the bank statement at July 31,$31,350. 3. Checks outstanding, $2,870. 4. Deposit in transit, not recorded by bank, $4,150. 5. A check for $170 in payment of an account was erroneously recorded in the check register as $710. 6. Bank debit memo for service charges, $20. a. Prepare a bank reconciliation, using the format shown in Exhibit 14. 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)