Bank ReconciliationThe 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, $20.a. Prepare a bank reconciliation, using the format shown in Exhibit 14.Mathers Co.Bank ReconciliationJuly 31Cash balance according to bank statement$fill in the blank dd438e08e013025_1 fill in the blank dd438e08e013025_3 fill in the blank dd438e08e013025_5Adjusted balance$fill in the blank dd438e08e013025_6Cash balance according to company's records$fill in the blank dd438e08e013025_7 fill in the blank dd438e08e013025_9 fill in the blank dd438e08e013025_11Adjusted balance$fill in the blank dd438e08e013025_12b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash?$fill in the blank 650d23ff0066046_1c. Must a bank reconciliation always balance (reconcile)?

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Answered: Bank Reconciliation The following data…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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, $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.

a. Prepare a bank reconciliation, using the format shown in Exhibit 14.

Mathers Co.
Bank Reconciliation
July 31
Cash balance according to bank statement	$fill in the blank dd438e08e013025_1
	fill in the blank dd438e08e013025_3
	fill in the blank dd438e08e013025_5
Adjusted balance	$fill in the blank dd438e08e013025_6
Cash balance according to company's records	$fill in the blank dd438e08e013025_7
	fill in the blank dd438e08e013025_9
	fill in the blank dd438e08e013025_11
Adjusted balance	$fill in the blank dd438e08e013025_12

b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash?
$fill in the blank 650d23ff0066046_1

c. Must a bank reconciliation always balance (reconcile)?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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