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, $19,940.
2. Cash balance according to the bank statement at August 31, $21,040.
3. Checks outstanding, $4,050.
4. Deposit in transit, not recorded by bank, $3,250.
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 f972f8fa8f8c04b_1
	$	fill in the blank f972f8fa8f8c04b_3
		fill in the blank f972f8fa8f8c04b_5
Adjusted balance		$fill in the blank f972f8fa8f8c04b_6
Cash balance according to company's records		$fill in the blank f972f8fa8f8c04b_7
		fill in the blank f972f8fa8f8c04b_9
		fill in the blank f972f8fa8f8c04b_11
Adjusted balance		$fill in the blank f972f8fa8f8c04b_12

b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? $fill in the blank a94e02f7efe407b_1

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