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, $20,390. 2. Cash balance according to the bank statement at August 31, $21,510. 3. Checks outstanding, $4,140. 4. Deposit in transit not recorded by bank, $3,320. 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. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co. Bank Reconciliation August 31, 20Y6 Cash balance according to bank statement 21,510 Add: Deposit in transit on August 31 3,320 Deduct: Outstanding checks 4,140 X Adjusted balance $ 20,690 Cash balance according to company's records 20,390 Add: Error in recording check 360 Deduct: Bank service charge Adjusted balance 60 X 20,690 b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? 20,690 $ c. Must a bank reconciliation always balance (reconcile)? Yes