The following data were accumulated for use in reconciling the bank account of Creative Design Co for August Y:
Cash balance according to the company's records at August $
Cash balance according to the bank statement at August $
Checks outstanding, $
Deposit in transit not recorded by bank, $
A check for $ in payment of an account was erroneously recorded in the check register as $
Bank debit memo for service charges, $
a Prepare a bank reconciliation, using the format shown in Exhibit
Creative Design Co
Bank Reconciliation
August
Line Item Description
Amount
Cash balance according to bank statement $
Adjusted balance
Cash balance according to company's records $
Adjusted balance
$
b If the balance sheet were prepared for Creative Design Co on August what amount should be reported for cash? $
c Must a bank reconciliation always balance reconcile
