Reference no: EM131264885
The following data were accumulated for use in reconciling the bank account of Western Co. for March:
a. Cash balance according to the company's records at March 31, $17,182.
b. Cash balance according to the bank statement at March 31, $15,960.
c. Checks outstanding $5,130.
d. Deposit in transit, not recorded by bank $6,727.
e. A check for $270 in payment of an account was erroneously record in the check register as $720.
f. Bank Debit memo for service charges, $75.
1. Prepare a bank reconciliation, using the format shown in Exhibit 7 in the textbook.
2. If the balance sheet were prepared for Western Co. on March 31, what amount should be reported for cash?
3. Must a bank reconciliation always balance?
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