Bank Reconciliation

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

1. Cashbalance according to the company's records at July 31 $23,460.
2. Cash balance according to thebank statementat July 31, $24,810.
3. Checks outstanding, $4,760.
4. Deposit in transit, not recorded by bank, $3,820.
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, $40.

a.A Bank reconciliation, using the format shown inExhibit 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_________

Adjusted balance$________

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

$_______