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 $16,020.
2. Cash balance according to the bank statement at July 31, $17,160.
3. Checks outstanding, $3,250.
4. Deposit in transit, not recorded by bank, $2,610.
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, $40.

a. Prepare a bank reconciliation, using the format shown in Exhibit 14.

Mathers Co.
Bank Reconciliation
July 31
Cash balance according to bank statement	$fill in the blank 5c014ffccffa07d_1
	fill in the blank 5c014ffccffa07d_3
	fill in the blank 5c014ffccffa07d_5
Adjusted balance	$fill in the blank 5c014ffccffa07d_6
Cash balance according to company's records	$fill in the blank 5c014ffccffa07d_7
	fill in the blank 5c014ffccffa07d_9
	fill in the blank 5c014ffccffa07d_11
Adjusted balance	$fill in the blank 5c014ffccffa07d_12

b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? $fill in the blank 9c9d04081fc0037_1

c. Must a bank reconciliation always balance (reconcile)?