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 $21,200.
2. Cash balance according to the bank statement at July 31, $22,080.
3. Checks outstanding, $4,300.
4. Deposit in transit, not recorded by bank, $3,460.
5. A check for $340 in payment of an account was erroneously recorded in the check register as $430.
6. Bank debit memo for service charges, $50.

Question Content Area

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

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$21,200. 2. Cash balance according to the bank statement at July 31,$22,080. 3. Checks outstanding, $4,300. 4. Deposit in transit, not recorded by bank, $3,460. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 6. Bank debit memo for service charges, $50. 4. Deposit in transit, not recorded by bank, $3,460. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 6. Bank debit memo for service charges, $50. a. Prepare a bank reconciliation, using the format shown in Exhibit 14. 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)