Instructions The following data were accumulated for use in reconciling the bank
ID: 2546333 • Letter: I
Question
Instructions 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, s24,556. 2. Cash balance according to the bank statement at August 31, $31.856 3. Checks outstanding, $13,280. 4. Deposit in transit, not recorded by bank, $6,392. 5. A cheok for S48 in payment of an account was erroneously recorded in the check register as $480 6. Bank debit memo for service charges, s20. A. Prepare a bank reconciliation, using the format shown in Exhibit 13. Refer to the Amount Descriptions list exact wording of the answer choices for text entries. For those boxes in which you must enter subracted or negative numbers use a minus sign. B. If the balance sheet were prepared for Creative Design Co. on August 31 what amount should be reported for cash? C. Must a bank reconcililation always balance (reconcile)?Explanation / Answer
Answer A Creative Design Co. Bank Reconciliation Statement as of 31st August 20Y6 Cash balance as per Company Records at Aug.31, $24,556 Add : Outstanding Checks $13,280 Error in recording check as $480 instead of $48 $432 $13,712 Less : Deposit in transit, not recorded by bank $6,392 Bank Service Charge $20 $6,412 Cash balance as per Bank statement at Aug.31, $31,856 Answer B Calculation of amount to be reported for Cash Cash balance as per Company Records at Aug.31, $24,556 Add : Error in recording check as $480 instead of $48 $432 $432 Less : Bank Service Charge $20 $20 Adjusted Cash balance to reported in Balance Sheet $24,968 Answer C Yes, bank reconciliation always balance (reconcile)