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, $15,180. 2. Cash balance according to the bank statement at August 31, $16,290. 3. Checks outstanding, $3,080. 4. Deposit in transit, not recorded by bank, $2,470. 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, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co. Bank Reconciliation August 31, 2016 Cash balance according to bank statement Add: Deposit in transit on August 31 Deduct: Outstanding checks Adjusted balance Cash balance according to company's records Add: Error in recording check Deduct: Bank service charge Adjusted balance Feedback 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 7 Feedback Check My Work b. Recall that the company's cash account balance is updated for any items in the company section of the bank reconcili