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, $20,320.
2. Cash balance according to the bank statement at August 31, $21,160.
3. Checks outstanding, $4,120.
4. Deposit in transit, not recorded by bank, $3,310.
5. A check for $340 in payment of an account was erroneously recorded in the check register as $430.
6. Bank debit memo for service charges, $60.

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		$
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		$