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,$$$27,040.$

Cash balance according to the bank statement at August $31,$$$28,180.$

Checks outstanding, $$5,490.$

Deposit in transit not recorded by bank, $$4,410.$

A check for $$340$ in payment of an account was erroneously recorded in the check register as $$430.$

Bank debit memo for service charges, $$30.$

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

$$

$$

Adjusted balance

Cash balance according to company's records $

$$

Adjusted balance

Amount

$

longrightarrow

$q,$

$q,$

$q,$

$q,$

$$

$$

$4$