eBook Show Me How 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, $16,650. 2. Cash balance according to the bank statement at July 31, $17,370. 3. Checks outstanding, $3,380. 4. Deposit in transit, not recorded by bank, $2,710. 5. A check for $340 issued in payment of an account was erroneously recorded in the check register as $430. 6. Bank debit memo for service charges, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. Nakajima 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 Nakajima Co. on July 31, what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)? Check My Work Previous Next