The following data were accumulated for use in reconciling the bank account of Western Co. for March: a. Cash balance according to the company's records at March 31, $17,182. b. Cash balance according to the bank statement at March 31, $15,960. c. Checks outstanding $5,130. d. Deposit in transit, not recorded by bank $6,727. e. A check for $270 in payment of an account was erroneously record in the check register as $720. f. Bank Debit memo for service charges, $75. 1. Prepare a bank reconciliation, using the format shown in Exhibit 7 in the textbook.

2. If the balance sheet were prepared for Western Co. on March 31, what amount should be reported for cash?

3. Must a bank reconciliation always balance?