1. 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, $18,990.
   2. Cash balance according to the bank statement at August 31, $20,040.
   3. Checks outstanding, $3,850.
   4. Deposit in transit, not recorded by bank, $3,100.
   5. A check for $480 in payment of an account was erroneously recorded in the check register as $840.
   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		$fill in the blank 4b7ab0047fb5078_1
   Adjustments:
   	fill in the blank 4b7ab0047fb5078_3
   	fill in the blank 4b7ab0047fb5078_5
   Total adjustments		fill in the blank 4b7ab0047fb5078_6
   Adjusted balance		$fill in the blank 4b7ab0047fb5078_7
   Cash balance according to company's records		$fill in the blank 4b7ab0047fb5078_8
   Adjustments:
   	$fill in the blank 4b7ab0047fb5078_10
   	fill in the blank 4b7ab0047fb5078_12
   Total adjustments		fill in the blank 4b7ab0047fb5078_13
   Adjusted balance		$fill in the blank 4b7ab0047fb5078_14

   b. If the balance sheet were prepared for Creative Design Co. on August 31, 2016, what amount should be reported for cash? $fill in the blank 85f9a000f07a07a_1

   c. Must a bank reconciliation always balance (reconcile)?