Bank reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31, $23,350. 2. Cash balance according to the bank statement at August 31, $24,580. 3. Checks outstanding, $4,740. 4. Deposit in transit not recorded by bank, $3,810. 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, $60. 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 $ Adjusted balance Cash balance according to company's records $ 0000000 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)?

Bank reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31,$23,350. 2. Cash balance according to the bank statement at August 31,$24,580. 3. Checks outstanding, $4,740. 4. Deposit in transit not recorded by bank, $3,810. 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, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. 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)