Bank Recondiliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20 y 6 : 1. Cash balance according to the company's records at Auqust 31,$20,480. 2. Cash balance according to the bank statement at August 31,$21,610. 3. Checks outstandino, $4,160. 4. Deposit in transit, not recorded by bank, $3,340. 5. A check for $480 in payment of an account was efroneously recorded in the check register as $840. 6. Bank debit raemo for service charges, $50. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. b. If the balance shest were prepared for Creative Desion Co. on Auoust 31, what amount should be reported for cash? c. Must a bankreconciliation always balance (reconcile)