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, $26,850. 2. Cash balance according to the bank statement at July 31, $28,220. 3. Checks outstanding, $5,450. 4. Deposit in transit, not recorded by bank, $4,380. 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, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima Co. Bank Reconciliation July 31 Cash balance according to bank statement