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, $24,810.

Cash balance according to the bank statement at July 31, $26,290.

Checks outstanding, $5,040.

Deposit in transit, not recorded by bank, $4,040.

A check for $170 issued in payment of an account was erroneously recorded in the check register as $710.

Bank debit memo for service charges, $60.

Question Content Area

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

Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company's records at July 31,$24,810. 2. Cash balance according to the bank statement at July 31,$26,290. 3. Checks outstanding, $5,040. 4. Deposit in transit, not recorded by bank, $4,040. 5. A check for $170 issued in payment of an account was erroneously recorded in the check register as $710. 6. Bank debit memo for service charges, $60. a. 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? $ c. Must a bank reconciliation always balance (reconcile)