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,$20,040. 2. Cash balance according to the bank statement at July 31,$21,150. 3. Checks outstanding, $4,070. 4. Deposit in transit, not recorded by bank, $3,270. 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, $50. 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)