EX.07-18

Instructions The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. 2. 3. Cash balance according to the company's records at August 31, $21,131. Cash balance according to the bank statement at August 31, $27,606. Checks outstanding, $13,321. Deposit in transit, not recorded by bank, $7,293. Acheck for $51 in payment of an account was erroneously recorded in the check register as $510. 4. 5. 6. Bank debit memo for service charges, $12. A. Prepare a bank reconciliation, using the format shown in Exhibit 13. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 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)? Amount Descriptions Amount Descriptions Adjusted balance Bank service charge Bank error in charging check as $51 instead of $510 Bank error in charging check as $510 instead of $51 Deposit in transit, not recorded by bank Error in recording check as $51 instead of $510 Error in recording check as $510 instead of $51 Outstanding checks Total adjustments Bank Reconciliation Shaded cells have feedback A. Prepare a bank reconciliation, using the format shown in Exhibit 13. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign Creative Design Co. Score: 64788 Bank Reconciliation August 31, 2046 1 Cash balance according to bank statement $27.606.00 2 Adjustments: 3 $7,293.00 Deposit in transit, not recorded by bank Outstanding checks 4 5 Total adjustments 6 Adjusted balance $21,131.00 & Cash balance according to company's records 9 Adjustments: Error in recording check as $510 instead of $51 10 $459.00 11 Bank service charge 12 Total adjustments 13 Adjusted balance Final Questions Shaded cells have feedback. 0 B.If the balance sheet were prepared for Creative Design Co. on August 31 what amount should be reported for cash? Points: 0/1 Feedback Check My Work Set up two sections: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each section. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error. Recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation C. Must a bank reconciliation always balance (reconcile) ? Yes No Points: 0/1