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,$27,250. 2. Cash balance according to the bank statement at July 31,$28,670. 3. Checks outstanding, $5,530. 4. Deposit in transit, not recorded by bank, $4,440. 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, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Foocback r Check My Work a. Set up two columns: one for the company cash account section and the other for the bank balance section. Determine the ellect of the data on each column. Fecal finished, the adjusted balances in the bank and company sections of the reconcliation must be equal, if not, an item has been overlooked or trealed in error. 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 balathe (reconcile)? Feedback Theck My Won b. The reconciled adjusted balance at the end of an accounting period should be what is reported for cash on the balance sheet c. Consider the purpose of the bankreconciliation and what it does