The following data were accumulated for use in reconciling the bank account of Zeks Co. for May 2016:

1.	Cash balance according to the companys records at May 31, 2016, $24,270.
2.	Cash balance according to the bank statement at May 31, 2016, $32,278.
3.	Checks outstanding, $14,668.
4.	Deposit in transit, not recorded by bank, $7,170.
5.	A check for $58 in payment of an account was erroneously recorded in the check register as $580.
6.	Bank debit memo for service charges, $12.

A.	Prepare a bank reconciliation, using the format shown in Exhibit 13 . Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. The word Deduct: or Add: will automatically appear if it is required.
B.	If the balance sheet were prepared for Zeks Co. on May 31, 2016, what amount should be reported for cash?
C.	Must a bank reconciliation always balance (reconcile)?

Amount Descriptions
Adjusted balance
Bank service charge
Bank error in charging check as $58 instead of $580
Bank error in charging check as $580 instead of $58
Deposit in transit, not recorded by bank
Error in recording check as $58 instead of $580
Error in recording check as $580 instead of $58
Outstanding checks

A. Prepare a bank reconciliation, using the format shown in

Exhibit 13

. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. The word Deduct: or Add: will automatically appear if it is required.

ZEKS CO.

Bank Reconciliation

May 31, 2016

1	Cash balance according to bank statement
2
3
4
5
6
7	Cash balance according to companys records
8
9
10
11

B. If the balance sheet were prepared for Zeks Co. on May 31, 2016, what amount should be reported for cash?

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