The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:

1. Cash balance according to the company's records at July 31 $19,510.
2. Cash balance according to the bank statement at July 31, $20,600.
3. Checks outstanding, $3,960.
4. Deposit in transit, not recorded by bank, $3,180.
5. A check for $480 in payment of an account was erroneously recorded in the check register as $840.
6. Bank debit memo for service charges, $50.

a. Prepare a bank reconciliation, using the format shown in Exhibit 14.