Bank reconciliation

The following data were accumulated for use in reconciling the bank account of Creative Design Co$.$ for August $20$Y$6$:

Cash balance according to the company's records at August $31,$$$18,880.$

Cash balance according to the bank statement at August $31,$$$20,030.$

Checks outstanding, $$3,830.$

Deposit in transit not recorded by bank, $$3,080.$

A check for $$270$ in payment of an account was erroneously recorded in the check register as $$720.$

Bank debit memo for service charges, $$50.$

a$.$ Prepare a bank reconciliation, using the format shown in Exhibit $13.$

Creative Design Co$.$

Bank Reconciliation

August $31,20Y6$

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reconciliation must be equal. If not, an item has been overlooked or treated in error.

b$.$ If the balance sheet were prepared for Creative Design Co$.$ on August $31,$ what amount should be reported for cash?

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c$.$ Must a bank reconciliation always balance $($reconcile$)?$