The following data were accumulated for use in reconciling the bank account of

The following data were accumulated for use in

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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, $32,110.Cash balance according to the bank statement at July 31, $31,350.Checks outstanding, $2,870.Deposit in transit, not recorded by bank, $4,150.A check for $170 in payment of an account was erroneously recorded in the check register as $710.Bank debit memo for service charges, $20.Prepare a bank reconciliation, using the format shown in Exhibit 13MATHERS CO.Bank Reconciliation July 31Cash balance according to bank statement$31,350Add deposit in transit, not recorded by bank4,150Deduct outstanding checks2,870Adjusted balance$32,630Cash balance according to company’s records$32,110Add error in recording check as $710 instead of $170540Deduct bank service charge20Adjusted balance$32,630If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? . Must a bank reconciliation always balance (reconcile)? EX 8-19 Entries for bank reconciliationUsing the data presented in Exercise 8-18, journalize the entry or entries that should be made by the company.July31Cash540Accounts Payable54031Miscellaneous Expense20Cash20
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