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, $22,840. Cash balance according to the bank statement at August 31, $24,240. Checks outstanding, $4,640. Deposit in transit, not recorded by bank, $3,720. A check for $170 in payment of an account was erroneously recorded in the check register as $710. 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 Cash balance according to bank statement $fill in the blank 0bcdbe01704cf97_1 fill in the blank 0bcdbe01704cf97_3 fill in the blank 0bcdbe01704cf97_5 Adjusted balance $fill in the blank 0bcdbe01704cf97_6 Cash balance according to company's records $fill in the blank 0bcdbe01704cf97_7 fill in the blank 0bcdbe01704cf97_9 fill in the blank 0bcdbe01704cf97_11 Adjusted balance $fill in the blank 0bcdbe01704cf97_12 b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? $fill in the blank 0f2ec3fd1f8a00b_1 c. Must a bank reconciliation always balance (reconcile)?

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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Bank Reconciliation

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, $22,840.
Cash balance according to the bank statement at August 31, $24,240.
Checks outstanding, $4,640.
Deposit in transit, not recorded by bank, $3,720.
A check for $170 in payment of an account was erroneously recorded in the check register as $710.
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
Cash balance according to bank statement		$fill in the blank 0bcdbe01704cf97_1
		fill in the blank 0bcdbe01704cf97_3
		fill in the blank 0bcdbe01704cf97_5
Adjusted balance		$fill in the blank 0bcdbe01704cf97_6
Cash balance according to company's records		$fill in the blank 0bcdbe01704cf97_7
		fill in the blank 0bcdbe01704cf97_9
		fill in the blank 0bcdbe01704cf97_11
Adjusted balance		$fill in the blank 0bcdbe01704cf97_12

b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash?
$fill in the blank 0f2ec3fd1f8a00b_1

c. Must a bank reconciliation always balance (reconcile)?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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