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

Cash balance according to the company's records at July 31, $15,020.

Cash balance according to the bank statement at July 31, $15,940.

Checks outstanding, $3,050.

Deposit in transit, not recorded by bank, $2,450.

A check for $480 issued in payment of an account was erroneously recorded in the check register as $840.

Bank debit memo for service charges, $40.

Question Content Area

a. Prepare a bank reconciliation, using the format shown in Exhibit 12.

Nakajima Co. Bank Reconciliation July 31

Cash balance according to bank statement	$fill in the blank 3cafb8000facfc1_1
Add bank service chargeAdd deposit in transit, not recorded by bankAdd error in recording check $840 instead of $480Add outstanding checksDeduct deposit in transit, not recorded by bank	- Select -
Add error in recording checkDeduct bank service chargeDeduct deposit in transit, not recorded by bankDeduct error in recording checkDeduct outstanding checks	- Select -
Adjusted balance	$fill in the blank 3cafb8000facfc1_6
Cash balance according to company's records	$fill in the blank 3cafb8000facfc1_7
Add bank service chargeAdd deposit in transit, not recorded by bankAdd error in recording check $840 instead of $480Add outstanding checksDeduct deposit in transit, not recorded by bank	- Select -
Add outstanding checksDeduct bank service chargeDeduct deposit in transit, not recorded by bankDedcut error in recording checkDeduct outstanding checks	- Select -
Adjusted balance	$fill in the blank 3cafb8000facfc1_12

Question Content Area

b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash? $fill in the blank 733774fc8fdffd7_1

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