Bank Reconciliation The following data were accumulated for use in reconciling t

Question

Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Bank Reconciliation Co. for August 20Y6: August 31, 20Y6 Cash balance according to bank statement 1. 2. 3. 4. Cash balance according to the company's records at August 31, $24,403. Cash balance according to the bank statement at August 31, $31,504. Checks outstanding, $13,345. Deposit in transit, not recorded by bank, S6.727. 5. A check for $55 in payment of an account was erroneously recorded in the check register as $550 6. Bank debit memo for service charges, $12 Cash balance according to company's records A Prepare a bank reconcuiation, using the format shown in Exhibil 13. Refer to the Amount Descriptions list pronided for the exact wording of the answer chaices tor text entries. For those boxes in wnich you must enter subtracted or negative numbers use a minus sign B. If the baiance sheet were prepared for Creetive Design Co on August 31 what amount shouid be reported for cash? C. Must a bank rsconciiation aways balance (reconcilej?

Explanation / Answer

Answer A. CREATIVE DESIGN CO Bank Recocilation Aug 31, 20Y6 Bank's Cash Balance Company's Cash Balance Per Bank Statement          31,504.00 Per General Ledger      24,403.00 Add: Add: Deposit in transit            6,727.00 Error in recording check ($550 -$55)            495.00          38,231.00      24,898.00 Less: Less: Outstanding Checks:       (13,345.00) Bank Charges            (12.00) Bank Balance after Reconcilation          24,886.00 Company Balance per Reconcilation      24,886.00                      -   Answer B. Amount Reported in Balance Sheet            24,886.00 Answer C. Yes

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