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, $24,403.

2. Cash balance according to the bank statement at May 31, 2016, $31,504.

3. Checks outstanding, $13,345.

4. Deposit in transit, not recorded by bank, $6,727.

5. A check for $55 in payment of an account was erroneously recorded in the check register as $550.

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)?