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The following data were accumulated for use in reconciling the bank account of Creative Design...

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Accounting

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,$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.
Creative Design Co.
Bank Reconciliation
August 31,20Y6
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 31, what amount should be reported for cash? $
c. Must a bank reconciliation always balance (reconcile)?
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