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 records at July 31 $25,940.

Cash balance according to the bank statement at July 31, $27,280.

Checks outstanding, $5,270.

Deposit in transit, not recorded by bank, $4,230.

A check for $590 in payment of an account was erroneously recorded in the check register as $950.

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)?