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 $31,$ $$19,320.$

Cash balance according to the bank statement at July $31,$ $$20,410.$

Checks outstanding, $$3,920.$

Deposit in transit, not recorded by bank, $$3,150.$

A check for $$590$ issued in payment of an account was erroneously recorded in the check register as $$950.$

Bank debit mema. Prepare a bank reconciliation, using the format shown in Exhibit $12.$

b$.$ If the balance sheet is prepared for Nakajima Co$.$ on July $31,$ what amount

should be reported for cash?

$$,x$

c$.$ Must a bank reconciliation always balance $($reconcile$)?$o for service charges, $$40.$