Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 2016: 1. Cash balance according to the company's records at August 31, $15,950. 2. Cash balance according to the bank statement at August 31, $17,080. 3. Checks outstanding, $3,240. 4. Deposit in transit, not recorded by bank, $2,600. 5. A check for $170 in payment of an account was erroneously recorded in the check register as $710. 6. 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, 2016 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance 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)