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EX 7-18 Bank reconciliation Obj. 5 The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31, $32,560. 2. Cash balance according to the bank statement at August 31, $46,300. 3. Checks outstanding, $28,540. 4. Deposit in transit not recorded by bank, $16,375. 5. A check for $180 in payment of an account was erroneously recorded in the check register as $1,800. 6. Bank debit memo for service charges, $45. 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? Must a bank reconciliation always balance (reconcile)?

EX 7-18 Bank reconciliation Obj. 5 The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31, $32,560. 2. Cash balance according to the bank statement at August 31, $46,300. 3. Checks outstanding, $28,540. 4. Deposit in transit not recorded by bank, $16,375. 5. A check for $180 in payment of an account was erroneously recorded in the check register as $1,800. 6. Bank debit memo for service charges, $45. 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? Must a bank reconciliation always balance (reconcile)?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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EX 7-18 Bank reconciliation Obj. 5 balance: The following data were accumulated for use in reconciling the bank account of Creative Design $34,135 Co. for August 20Y6: OW HOW 1. Cash balance according to the company's records at August 31, $32,560. 2. Cash balance according to the bank statement at August 31, $46,300. 3. Checks outstanding, $28,540. 4. Deposit in transit not recorded by bank, $16,375. 5. A check for $180 in payment of an account was erroneously recorded in the check register as $1,800. 6. Bank debit memo for service charges, $45. 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? Must a bank reconciliation always balance (reconcile)? C.
Transcribed Image Text:EX 7-18 Bank reconciliation Obj. 5 balance: The following data were accumulated for use in reconciling the bank account of Creative Design $34,135 Co. for August 20Y6: OW HOW 1. Cash balance according to the company's records at August 31, $32,560. 2. Cash balance according to the bank statement at August 31, $46,300. 3. Checks outstanding, $28,540. 4. Deposit in transit not recorded by bank, $16,375. 5. A check for $180 in payment of an account was erroneously recorded in the check register as $1,800. 6. Bank debit memo for service charges, $45. 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? Must a bank reconciliation always balance (reconcile)? C.
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