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,$$$23,860.$

Cash balance according to the bank statement at August $31,$$$24,850.$

Checks outstanding, $$4,840.$

Deposit in transit, not recorded by bank, $$3,890.$

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

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 $31,20Y6$

Cash balance according to bank statement

Adjustments:

$$

$$

Total adjustments

Adjusted balance

Cash balance according to company's records

Adjustments: