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

Question:

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, $32,110.
2. Cash balance according to the bank statement at July 31, $31,350.
3. Checks outstanding, $2,870.
4. Deposit in transit, not recorded by bank, $4,150.
5. A check for $170 in payment of an account was erroneously recorded in the check register as $710.
6. Bank debit memo for service charges, $20.
a. Prepare a bank reconciliation, using the format shown in Exhibit 13.
b. If the is prepared for Mathers Co. on July 31, what amount should be reported for cash?
c. Must a bank reconciliation always balance (reconcile)?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...