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Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Cash balance

Entries for 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, $18,890.
  2. Cash balance according to the bank statement at August 31, $20,030.
  3. Checks outstanding, $3,830.
  4. Deposit in transit, not recorded by bank, $3,080.
  5. A check for $270 in payment of an account was erroneously recorded in the check register as $720.
  6. Bank debit memo for service charges, $60.

Journalize the entries that should be made by the company that (a) increase cash and (b) decrease cash.

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