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, $25,290. 2. Cash balance according to the bank statement at July 31, $26,620. 3. Checks outstanding, $5,130. 4. Deposit in transit, not recorded by bank, $4,120. 5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement $ Adjusted balance Cash balance according to company's records $ Adjusted balance 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)?

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,$25,290 2. Cash balance according to the bank statement at July 31,$26,620. 3. Checks outstanding, \$5,130. 4. Deposit in transit, not recorded by bank, $4,120. 5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, 540 . a. Prepare a bank reconcilation, using the format shown in Exhibit 12 . b. If the balance sheet is prepared for Nakajma Co. on July 31 , what amount should be reported for cash? c. Must a bank reconcilation always balance (reconcile)