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Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's

  1. 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 $28,620.
    2. Cash balance according to the bank statement at July 31, $30,060.
    3. Checks outstanding, $5,810.
    4. Deposit in transit, not recorded by bank, $4,670.
    5. A check for $590 in payment of an account was erroneously recorded in the check register as $950.
    6. Bank debit memo for service charges, $60.

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

    Mathers 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 Mathers Co. on July 31, what amount should be reported for cash? $

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

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