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.$

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$)?$