1. Cash balance according to the company's records at August 31, $20,720. 2. Cash balance according to the bank statement at August 31, $21,870. 3. Checks outstanding, $4,210. 4. Deposit in transit not recorded by bank, $3,380. 5. A check for $590 in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co. Bank Reconciliation August 31, 20Y6 Line Item Description Cash balance according to bank statement Amount $ Adjusted balance Cash balance according to company's records $ Adjusted balance b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? $ C. Must a bank reconciliation always balance (reconcile)?