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Instructions Amount Descriptions The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: Amount Descriptions Adjusted balance 1. Bank service charge 2. Cash balance according to the company's records at August 31, $20,870. Cash balance according to the bank statement at August 31, $37,600. Checks outstanding, $23,375. Bank error in charging check as $100 instead of $1,000 3 Bank error in charging check as $1,000 instead of S100 4. Deposit in transit not recorded by bank, $7,500. Deposit in transit, not recorded by bank 5. A check for $100 in payment of an account was erroneously recorded in the check register as $1,000. Bank debit memo for service charges, $45. 6. Error in recording check as $100 instead of $1,000 Error in recording check as $1,000 instead of $100 Outstanding checks Total adjustments A. Prepare a bank reconciliation, using the format shown in Exhibit 13. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 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)? Bank Reconciliation Final Questions A. Prepare a bank reconciliation, using the format shown in Exhibit 13. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 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)? Creative Design Co. Bank Reconciliation O No August 31, 2046 O Yes 1 Cash balance according to bank statement 2 Adjustments: 3 4 5 6 3 Cash balance according to company's records 9 Adjustments: 10 11 12 13

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