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, $15,790.
2. Cash balance according to the bank statement at August 31, $16,750.
3. Checks outstanding, $3,210.
4. Deposit in transit, not recorded by bank, $2,570.
5. A check for $590 in payment of an account was erroneously recorded in the check register as $950.
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)