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, $28,110. 2. Cash balance according to the bank statement at August 31, $29,630. 3. Checks outstanding, $5,710. 4. Deposit in transit not recorded by bank, $4,580. 5. A check for $270 in payment of an account was erroneously recorded in the check register as $720. 6. Bank debit memo for service charges, $60. 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 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bank reconciliation
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, $28,110.
2. Cash balance according to the bank statement at August 31, $29,630.
3. Checks outstanding, $5,710.
4. Deposit in transit not recorded by bank, $4,580.
5. A check for $270 in payment of an account was erroneously recorded in the check register as $720.
6. Bank debit memo for service charges, $60.
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
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?
Transcribed Image Text:Bank reconciliation 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, $28,110. 2. Cash balance according to the bank statement at August 31, $29,630. 3. Checks outstanding, $5,710. 4. Deposit in transit not recorded by bank, $4,580. 5. A check for $270 in payment of an account was erroneously recorded in the check register as $720. 6. Bank debit memo for service charges, $60. 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 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?
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