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, $15,870. 2. Cash balance according to the bank statement at August 31, $16,820. 3. Checks outstanding, $3,220. 4. Deposit in transit, not recorded by bank, $2,590. 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, 2016 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance b. If the balance sheet were prepared for Creative Design Co. on August 31, 2016, what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)