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, $42,920.Cash balance according to the bank statement at August 31, $56,300.Checks outstanding, $25,390.Deposit in transit not recorded by bank, $13,325.A check for $150 in payment of an account was erroneously recorded in the check register as $1,500.Bank debit memo for service charges, $35.a. Prepare a bank reconciliation, using the format shown in Exhibit 13.Creative Design Co.Bank ReconciliationAugust 31, 20Y6Cash balance according to bank statement $ Adjusted balance $Cash balance according to company's records $ Adjusted balance $

Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…

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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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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, $42,920.
Cash balance according to the bank statement at August 31, $56,300.
Checks outstanding, $25,390.
Deposit in transit not recorded by bank, $13,325.
A check for $150 in payment of an account was erroneously recorded in the check register as $1,500.
Bank debit memo for service charges, $35.

a. Prepare a bank reconciliation, using the format shown in Exhibit 13.

Creative Design Co.
Bank Reconciliation
August 31, 20Y6
Cash balance according to bank statement		$


Adjusted balance		$
Cash balance according to company's records		$


Adjusted balance		$

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