Entries for 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, $14,560.
2. Cash balance according to the bank statement at July 31, $15,470.
3. Checks outstanding, $2,960.
4. Deposit in transit, not recorded by bank, $2,370.
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.

Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge.

a. July 31
b. July 31