Entries for 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, $20,910. 2. Cash balance according to the bank statement at July 31, $22,230. 3. Checks outstanding, $4,240. 4. Deposit in transit, not recorded by bank, $3,410. 5. A check for $170 issued in payment of an account was erroneously recorded in the check register as $710. 6. Bank debit memo for service charges, $50. Journalize the entries that should be made by the company, part (a) Error and part (b) Service Charge. If an amount box does not require an a. July 31 Cash Accounts Payable Miscellaneous Expense b. July 31 50 X Cash SO X Feedback Check My Work Keep in mind that the company needs to joumalize any adjusting items in the company section of the bank reconciliation, because these have not been prev company. Debit memo items like bank service charges decrease Cash. If the company made an error that understates cash in the company section, the jour increase Cash