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, $26,940. 2. Cash balance according to the bank statement at August 31, $28,070. 3. Checks outstanding, $5,470. 4. Deposit in transit, not recorded by bank, $4,390. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 6. Bank debit memo for service charges, $40. 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 Add: Deposit in transit on August 31 Deduct: Outstanding checks Adjusted balance Dmihi Cash balance according to company's records Add: Error in recording check Deduct: Bank service charge Adjusted balance