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, $20,180.

Cash balance according to the bank statement at August 31, $21,020.

Checks outstanding, $4,100.

Deposit in transit, not recorded by bank, $3,290.

A check for $340 in payment of an account was erroneously recorded in the check register as $430.

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		$
Adjustments:
Total adjustments
Adjusted balance		$
Cash balance according to company's records		$
Adjustments:
	$
Total adjustments
Adjusted balance		$

b. If the balance sheet were prepared for Maplewood Co. on August 31, 2016, what amount should be reported for cash? $

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