Bank Reconcl The following data were accumulatad for use in reconciling the bank

Question

Bank Reconcl The following data were accumulatad 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, $24,710 2. Cash balance according to the bank statement at August 31, $26.190 3. Chack out tanding, $,020. 4. Deposit in transit, not recordad by bank, $4,030 5. A check for $170 in payment of an account was erroneousl n the check register as $710. 6. Bank debit memo for service charges, $50 recorded i a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co Cash baancs accord ng to bank statement Adjustments Total adjustment Adjusted balance Cash balance according to company's records Adjustments Totsl adjustments Adjusted balance check My Work Previous Next All work saved Save and Ext Submit Assignment for Grading

Explanation / Answer

a. Bank Reconcillation Cash Balance ar per Bank $26,190 Adjustment Deposit in transit $4,030 Outstanding Check -$5,020 Adjusted Balance as per Bank $25,200 Cash Balance as per Books $24,710 Adjustment Bank Service charges -$50 Error in Recording Check $540 Adjusted Balance as per Book $25,200 b. Calculation of Amount to be Reported for Cash Cash Balance as per Company Record at Aug31 $24,710 Add: Error in Recording Check $540 Less: Bank Charges -$50 Adjusted Cash Balance to be reported in Balancesheet $25,200 C. Yes, Bank Reconcilliation always balance reconcile.

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