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Bank Reconciliation
The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:
Cash balance according to the company's records at July 31 $21,310.
Cash balance according to the bank statement at July 31, $22,480.
Checks outstanding, $4,330.
Deposit in transit, not recorded by bank, $3,470.
A check for $590 in payment of an account was erroneously recorded in the check register as $950.
Bank debit memo for service charges, $50.
a. Prepare a bank reconciliation, using the format shown in Exhibit 14.
| Mathers Co. |
| Bank Reconciliation |
| July 31 |
| Cash balance according to bank statement | $ |
| | |
| | |
| Adjusted balance | $ |
| Cash balance according to company's records | $ |
| | |
| | |
| Adjusted balance | $ |
b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? $
c. Must a bank reconciliation always balance (reconcile)?
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