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, $32,560. Cash balance according to the bank statement at August 31, $46,300. Checks outstanding, $28,540. Deposit in transit not recorded by bank, $16,375. A check for $180 in payment of an account was erroneously recorded in the check register as $1,800. Bank debit memo for service charges, $45. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co.Bank ReconciliationAugust 31, 20Y6 Creative Design Co.Bank ReconciliationAugust 31, 20Y6 Line Item Description Amount Cash balance according to bank statement Question Content Area b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? fill in the blank 1 of 1$ c. Must a bank reconciliation always balance (reconcile)?
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, $32,560. Cash balance according to the bank statement at August 31, $46,300. Checks outstanding, $28,540. Deposit in transit not recorded by bank, $16,375. A check for $180 in payment of an account was erroneously recorded in the check register as $1,800. Bank debit memo for service charges, $45. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co.Bank ReconciliationAugust 31, 20Y6 Creative Design Co.Bank ReconciliationAugust 31, 20Y6 Line Item Description Amount Cash balance according to bank statement Question Content Area b. If the balance sheet were prepared for Creative Design Co. on August 31, what amount should be reported for cash? fill in the blank 1 of 1$ c. Must a bank reconciliation always balance (reconcile)?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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Question
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, $32,560.
- Cash balance according to the bank statement at August 31, $46,300.
- Checks outstanding, $28,540.
- Deposit in transit not recorded by bank, $16,375.
- A check for $180 in payment of an account was erroneously recorded in the check register as $1,800.
- Bank debit memo for service charges, $45.
a. Prepare a bank reconciliation, using the format shown in Exhibit 13.
Creative Design Co.Bank ReconciliationAugust 31, 20Y6
Creative Design Co.Bank ReconciliationAugust 31, 20Y6
Line Item Description | Amount |
---|---|
Cash balance according to bank statement |
Question Content Area
b. If the
fill in the blank 1 of 1$
c. Must a bank reconciliation always balance (reconcile)?
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