Bank reconciliationAdjusted balance: $44,235The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 2016:1. Cash balance according to the company's records at August 31,$42,920. 2. Cash balance according to the bank statement at August 31, $56,300.3. Checks outstanding, $25,390.4. Deposit in transit not recorded by bank, $13,325. 5. A check for $150 in payment of an account was erroneously recordedin the check register as $1,500.6. Bank debit memo for service charges, $35. 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)?
Bank reconciliation
Adjusted balance: $44,235
The following data were accumulated for use in reconciling the bank
account of Creative Design Co. for August 2016:
1. Cash balance according to the company's records at August 31,
$42,920.
2. Cash balance according to the bank statement at August 31, $56,300.
3. Checks outstanding, $25,390.
4. Deposit in transit not recorded by bank, $13,325.
5. A check for $150 in payment of an account was erroneously recorded
in the check register as $1,500.
6. Bank debit memo for service charges, $35.
a. Prepare a bank reconciliation, using the format shown in Exhibit 13.
b. If the
C. Must a bank reconciliation always balance (reconcile)?
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