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Bank reconciliation The following data were accumulated for use in reconciling the bank account...

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Accounting

Bank reconciliation
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
Cash balance according to the company's records at August 31,$18,890.
Cash balance according to the bank statement at August 31, $20,060.
Checks outstanding, $3,830.
Deposit in transit not recorded by bank, $3,080.
A check for $270 in payment of an account was erroneously recorded in the check register as $720.
Bank debit memo for service charges, $30.
a. Prepare a bank reconciliation, using the format shown in Exhibit 13.
Creative Design Co.
Bank Reconciliation
August 31,20Y6
Line Item Description
Cash balance according to bank statement
Amount
$
$
$
$
$
Adjusted balance
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)?
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