Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $15,910. Cash balance according to the bank statement at July 31, $16,860. Checks outstanding, $3,230. Deposit in transit, not recorded by bank, $2,590. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $50. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement $fill in the blank 69b84e06902afab_1 15,910. Add error in recording check $950 instead of $590 fill in the blank 69b84e06902afab_3 fill in the blank 69b84e06902afab_5 Adjusted balance $fill in the blank 69b84e06902afab_6 Cash balance according to company's records $fill in the blank 69b84e06902afab_7 fill in the blank 69b84e06902afab_9 fill in the blank 69b84e06902afab_11 Adjusted balance $fill in the blank 69b84e06902afab_12 Feedback 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 column. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error. b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash? $fill in the blank d48aa0f6b06fffe_1 c. Must a bank reconciliation always balance (reconcile)?