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, $42,920. 2. Cash balance according to the bank statement at August 31, $56,300. 3. Checks outstanding, $25,390. 4. Deposit in transit not recorded by bank, $13,325. 5. A check for $150 in payment of an account was erroneously recorded in the check register as $1,500. 6. Bank debit memo for service charges, $35. 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 56.300 Add: Deposit in transit on August 31 13.325 Deduct: Outstanding cheder Adjusted balance Cash balance according to companys records $42.920 LEO D enis Bredball Check My Work Surat Aseet Feedback Check My Work a. Set up two sections: one for the company cash account section and the other for the bank balance section. Determine the the data on each section. Recall that when you are finished, the adjusted balanes in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error. 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)? Feedback Check My Work b. Recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation Check My Work Previous N All work saved. Email Instructor Save and Submit Assignment for