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, $24,740. 2. Cash balance according to the bank statement at August 31, $26,030. 3. Checks outstanding, $5,020. 4. Deposit in transit, not recorded by bank, $4,030. 5. A check for $590 in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $60. 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 Adjusted balance Cash balance according to company's records 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)? Previous Next

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,$24,740. 2. Cash balance according to the bank statement at August 31,$26,030. 3. Checks outstanding, $5,020. 4. Deposit in transit, not recorded by bank, $4,030. 5. A check for $590 in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? 1 c. Must a bank reconciliation always balance (reconcile)? 1. Cash balance occording to the company's reconds at August 31,$24,740 2. Cash balance acconding to the bank atatement at August 3t, $26,030. 3. Checks outstanding, $5,020. 4. Depost in transit, not recorded by bank, $4,030 5. A check for $590 in parment of an acceunt was erroneousy recorded in the check register as 3950 6. Bank debit memo for service charges, $60. a. Frepare a bank reconchation, using the format shown in Eabit 13. b. If the bulance sheet were prepaled for Creative Design Co. on Aigute 31 , what amount ahould be reported for cash? c. Must a bank reconctuation alweys balance (recencile)