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,$24,670. 2. Cash balance according to the bank statement at July 31,$26,080. 3. Checks outstanding, $5,010. 4. Deposit in transit, not recorded by bank, $4,020. 5. A check for $270 issued in payment of an account was erroneously recorded in the check register as $720. 6. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. b. If the balance sheet is prepared for Nakajima Co. on July 31 , what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)