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

a. Cash balance according to the company's records at July 31, $8,346.50.

b. Cash balance according to the bank statement at July 31, $9,066.35.

c. Checks outstanding, $3,175.25.

d. Deposit in transit, not recorded by bank, $2,615.40.

e. A check for $240 in payment of an account was erroneously recorded in the check register as $420.

f. Bank debit memorandum for service charges, $20.00.

Prepare a bank reconciliation, using the format shown in Exhibit 7.