eBook Show Me How Calculator E Print Item Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 2016: 1. Cash balance according to the company's records at August 31, $20,030. 2. Cash balance according to the bank statement at August 31, $21,160. 3. Checks outstanding, $4,070. 4. Deposit in transit, not recorded by bank, $3,260. 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, $40. 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 Add: Deposit in transit on August 31 s Deduct: Bank service charge x Adjusted balance Cash balance according to company's records Add: Outstanding checks X Deduct: Error in recording check x Adjusted balance Activate Windows Go to Settimoto reconciliation must be equal. If not, an item has been overlooked or treated in error. b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)? Yes Feedback