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, $20,870. 2. Cash balance according to the bank statement at August 31, $37,600. 3. Checks outstanding, $23,375. 4. Deposit in transit not recorded by bank, $7,500. 5. A check for $100 in payment of an account was erroneously recorded in the check register as $1,000 6. Bank debit memo for service charges, $45. 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: Bank service charge x 27,960X Deposit in transit, not recorded by bank x 4,330 X Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Error in recording check X X August 31, 2046 Cash balance according to bank statement Adjustments: Bank service charge x 27,960 X Deposit in transit, not recorded by bank x 4,330 X Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Error in recording check Bank service charge Total adjustments Adjusted balance $ b. If the balance sheet were prepared for Creative Design Co. on August 31 what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)