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,$27,540. 2. Cash balance according to the bank statement at August 31,$29,050. 3. Checks outstanding, $5,590. 4. Deposit in transit not recorded by bank, $4,490. 5. A check for $270 in payment of an account was erroneousty recorded in the check register as $720. 6. Bank debit memo for service charges, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. 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)