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, $27,720. 2. Cash balance according to the bank statement at August 31, $28,880. 3. Checks outstanding, $5,630. 4. Deposit in transit, not recorded by bank, $4,520. 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, $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 28,880 Add: Deposit in transit on August 31 4,520 Deduct: Outstanding checks 5,630 Adjusted balance 27,770 Cash balance according to company's records 27,720 Add: Error in recording check 90 Deduct: Bank service charge 40 27,770 Adjusted balance