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,$25,120. 2. Cash balance according to the bank statement at August 31, $26,640. 3. Checks outstanding, $5,100. 4. Deposit in transit not recorded by bank, $4,090. 5. A check for $170 in payment of an account was erroneously recorded in the check register as $710. 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? c. Must a bank reconciliation always balance (reconcile)