Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance according to the company's records at August 31, $20,300. Cash balance according to the bank statement at August 31, $21,600. Checks outstanding, $4,120. Deposit in transit, not recorded by bank, $3,310. A check for $170 in payment of an account was erroneously recorded in the check register as $710. 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: Deposit in transit, not recorded by bank Outstanding checks Total adjustments Adjusted balance $ Cash balance according to company's records $ Adjustments: $ Total adjustments Adjusted balance $ Feedback 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)? Feedback

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, $20,300.
2. Cash balance according to the bank statement at August 31, $21,600.
3. Checks outstanding, $4,120.
4. Deposit in transit, not recorded by bank, $3,310.
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, 20Y6
Cash balance according to bank statement		$
Adjustments:
Deposit in transit, not recorded by bank
Outstanding checks
Total adjustments
Adjusted balance		$
Cash balance according to company's records		$
Adjustments:
	$
Total adjustments
Adjusted balance		$