CREATIVE DESIGN CO.

Bank Reconciliation August 31,20Y6

he 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,$26,860. 2. Cash balance according to the bank statement at August 31, \$27,990. 3. Checks outstanding, $5,450. 4. Deposit in transit not recorded by bank, $4,380. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 6. Bank debit memo for service charges, $30. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash