Question

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, $22,350.
2. Cash balance according to the bank statement at August 31, $23,570.
3. Checks outstanding, $4,540.
4. Deposit in transit, not recorded by bank, $3,640.
5. A check for $590 in payment of an account was erroneously recorded in the check register as $950.
6. Bank debit memo for service charges, $40.

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		$

Calculator Print Item Bank Reconciliation 2016: The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 1. Cash balance according to the company's records at August 31, $22,350. 2. Cash balance according to the bank statement at August 31, $23,570. 3. Checks outstanding, $4,540. 4. Deposit in transit, not recorded by bank, $3,640. 5. A check for $590 in payment of an account was erroneously recorded in the 6. Bank debit memo for service charges, $40. a. Prepare a bank reconciation using the format shown in Ethibit 13 Creative Design Co. Bank Reconciliation August 31, 2016 Cash balance according to bank statement Adjusted balance Cash balance according to company records Adjusted balance Search

Answer 1

Bank reconciliation

August 31, 20Y6

Cash balance according to bank statement	23,570
Deposit in transit	3,640
Outstanding checks	-4,540
Adjusted balance	$22,670
Cash balance according to company's records	22,350
Correct of book error	360
Bank service charge	-40
Adjusted balance	$22,670

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