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$$s records at August $31,$ $$32,560.$

Cash balance according to the bank statement at August $31,$ $$46,300.$

Checks outstanding, $$28,540.$

Deposit in transit not recorded by bank, $$16,375.$

A check for $$180$ in payment of an account was erroneously recorded in the check register as $$1,800.$

Bank debit memo for service charges, $$45.$

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

$46,300$

Add: Deposit in transit on August $31$

Add: Deposit in transit on August $31$

$-$ 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

Feedback Area

Feedback

a$.$ Set up two sections: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each section. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error.

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$)?$