The following data were accumulated for use in reconciling the bank account of Nakajima Co, for July: 1. Casti bstance according to the company's records at July 31,$49,910. 2. Cash balance according to the bank statement at July 31,$48,250. 3. Checks outstanding, $4,460. 4. Deposit in transit, not recorded by bank, $6,450. 5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 12. TOseck My Work a. Set up wo columns: one for the company cash account section and the ohter for the bank balance section. Determine the effect of the data on each column. Recall that when you are finished, the actusted calances in the bank and company sections of the reconcliation must be equak. If not, an ibem has been overtocked or treated in errot If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash? Must a bank reconcliation always balance (reconcile)? Feodtack T Check My Wore b. The reconcilad adiusted bolance at the end of an accounting peniod should be what is reported ifor cash on the balance sheet. c. Consider the purpose of the bank reconciliation and what it does