Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.

Cash balance per books, September 30	$ 3,181
Deposits in transit	421
Notes receivable and interest collected by bank	888
Bank charge for check printing	29
Outstanding checks	1,347
NSF check	144

a.$2,970

b.$3,896

c.$2,255

d.$3,114

Bank Reconciliation

The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:

Cash balance according to the company's records at July 31 $15,470.

Cash balance according to the bank statement at July 31, $16,510.

Checks outstanding, $3,140.

Deposit in transit, not recorded by bank, $2,520.

A check for $270 in payment of an account was erroneously recorded in the check register as $720.

Bank debit memo for service charges, $30.

a. Prepare a bank reconciliation, using the format shown in Exhibit 14.

Mathers 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 Mathers Co. on July 31, what amount should be reported for cash? $

c. Must a bank reconciliation always balance (reconcile)?

Consider the following information taken from the cash account. Assume cash payments were 80% of collections.

Cash
??	Beginning balance
$115,375	Collections
??	Disbursements
$80,275	Ending balance

How much was the beginning balance of the cash account?

a.$92,300

b.$103,350

c.$57,200

d.$35,100