The following data were accumulated for use in reconciling the bank account of Creative Design Co$.$ for August $20$Y$6$:

Cash balance according to the company's records at August $31,$ $$15,710.$

Cash balance according to the bank statement at August $31,$ $$16,850.$

Checks outstanding, $$3,190.$

Deposit in transit not recorded by bank, $$2,560.$

A check for $$170$ in payment of an account was erroneously recorded in the check register as $$710.$

Bank debit memo for service charges, $$30.$

Question Content Area

a$.$ Prepare a bank reconciliation, using the format shown in Exhibit $13.$

Creative Design Co$.$

Bank Reconciliation

August $31,20$Y$6$

Line Item Description Amount

Cash balance according to bank statement $Cash balance according to bank statement

$-$ Select $-$

$-$ Select $-$

Adjusted balance $Adjusted balance

Cash balance according to company's records $Cash balance according to company's records

$-$ Select $-$

$-$ Select $-$

Adjusted balance $Adjusted balance

Question Content Area

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 $1$ of $1$$

c$.$ Must a bank reconciliation always balance $($reconcile$)?$ The following data were accumulated for use in reconciling the bank account of Creative Design Co$.$ for August $20$Y$6$:

Cash balance according to the company's records at August $31,$$$15,710.$

Cash balance according to the bank statement at August $31,$$$16,850.$

Checks outstanding, $$3,190.$

Deposit in transit not recorded by bank, $$2,560.$

A check for $$170$ in payment of an account was erroneously recorded in the check register as $$710.$

Bank debit memo for service charges, $$30.$

a$.$ Prepare a bank reconciliation, using the format shown in Exhibit $13.$

Creative Design Co$.$

Bank Reconciliation

August $31,20Y6$

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$)?$