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 $22,600.
2. Cash balance according to the bank statement at July 31, $24,000.
3. Checks outstanding, $4,590.
4. Deposit in transit, not recorded by bank, $3,680.
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, $50.

(a) Prepare a bank reconciliation, using the format shown below.

Mathers Co.
Bank Reconciliation
July 31
Cash balance according to bank statement $
Add deposit in transit, not recorded by bank
Deduct outstanding checks
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)?

See explanation for all the requirements.

Explanation:

Requirement A

                                Mathers Co.

                        Bank Reconciliation

                                   July 31

Cash balance according to bank statement           $ 24,000

Add: deposit in transit                                                 $3,680

Deduct: outstanding checks                                        (4,590)

Adjusted balance                                                      $23,090

Cash balance according to company's records       $22,600

Add: Error in records payments (710-170)                       $540

Less: Bank charge                                                            ($50)

Adjusted balance                                                       $23,090

Requirement B and C

B. If the balance sheet is prepared for Mathers Co. on July 31, $23,090 should be reported for cash.

C. It is a necessary procedure for a bank and an individual or an organization to adjust the bank balance and book balance to avoid any kind of errors. Therefore, reconciliation is always significant. A bank must always do a reconciliation.

these are the four factors that influence enterpreneurship development

1. economic development

2. culture

3.technological development

4. education

answerjointly by the fed and by the behavior of individuals who hold money and of banks in which money is held;