Calculator 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, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 14. Mathers Co. Bank Reconciliation July 31 Cash balance according to bank statement 18,560 Add deposit in transit, not recorded by bank2.860 Deduct outstanding checks 3,560 $ 17.860 $ 17.540 360 40 ) Adjusted balance Cash balance according to company's records Add error in recording check $950 instead of $590 Deduct bank service charg Adjusted balance S 17.860 b. If the balance sheet is prepared for Mathers Co on July 31, what amount should be reported for cash? c. Must a bank reconcililation always balance (reconcile)