Bank reconciliation

The following data were accumulated for use in

reconciling the bank account of Creative Design Co$.$ for

August $20$Y$6$:

Cash balance according to the company's records at

August $31,$ $$17,670.$

Cash balance according to the bank statement at

August $31,$$$18,690.$

Checks outstanding, $$3,590.$

Deposit in transit not recorded by bank, $$2,880.$

A check for $$590$ in payment of an account was

erroneously recorded in the check register as $$950.$

Bank debit memo for service charges, $$50.$

a$.$ Prepare a bank reconciliation, using the format

shown in Exhibit $13.$

Creative Design Co$.$

Bank Reconciliation

August $31,20Y6$

Line Item Description

b$.$ If the balance sheet were prepared for Creative

Design Co$.$ on August $31,$ what i mount should be

reported for cash?

$

c$.$ Must a bank reconciliation al 'ays balance

$($reconcile$)?$