The bookkeeper for Octagon Flowers discovered the following data for use in reconciling the bank account for July: a. Cash balance according to the company's records on July 31, $15,600. b. Cash balance according to the bank statement on July 31, $16,230. c. Cheques are outstanding, $3,180. d. Deposit in transit, not recorded by bank, $1,950. e. A $3,500 deposit received by the bank was recorded as $2,500 on the bank statement. f. A cheque for $270 in payment of Telephone Expense was erroneously recorded in the cheque register as $720. g. Bank debit memo for service charges, $50. 1. Prepare a bank reconciliation, using the format shown in Exhibit 7. 2. If a balance sheet were prepared for Octagon Flowers on July 31, what amount should be reported for cash? 3. Must a bank reconciliation always balance (reconcile)?