Show Me How

Bank Reconciliation

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

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		$fill in the blank 839da9008fc9fe6_1
Add: Bank service chargeAdd: Deposit in transit on August 31Add: Error in recording checkAdd: Outstanding checks		- Select -
Deduct: Bank service chargeDeduct: Deposit in transit on August 31Deduct: Error in recording checkDeduct: Outstanding checks		- Select -
Adjusted balance		$fill in the blank 839da9008fc9fe6_6
Cash balance according to company's records		$fill in the blank 839da9008fc9fe6_7
Add: Bank service chargeAdd: Deposit in transit on August 31Add: Error in recording checkAdd: Outstanding checks		- Select -
Deduct: Bank service chargeDeduct: Deposit in transit on August 31Deduct: Error in recording checkDeduct: Outstanding checks		- Select -
Adjusted balance		$fill in the blank 839da9008fc9fe6_12

b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? $fill in the blank c9b345fcbfaefac_1

c. Must a bank reconciliation always balance (reconcile)?

YesNo

1. Cash balance according to the company's records at August 31, $24,810.
2. Cash balance according to the bank statement at August 31, $26,230.
3. Checks outstanding, $5,040.
4. Deposit in transit, not recorded by bank, $4,040.
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, $30.