Book Show Me How Calculator The following data were accumulated for use in recon
ID: 2579695 • Letter: B
Question
Book Show Me How Calculator 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, $17,360. 2·Cash balance according to the bank statement at August 31, $18,470. 3-Checks outstanding, $3,520. 4. Deposit in transit, not recorded by bank, $2,830. S. A check for $270 in payment of an account was erroneously recorded in the check register as $720. 6. Bank debit memo for service charges, $30 a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co Bank Reconcillation Cash balance according to bank statement Total adjustments Adjusted balance Cash balance according to company's records Total adjustments Adjusted balance Prev All work saved. boExplanation / Answer
a. Creative Design Co.
Bank Reconciliation Statement
August 31 20Y6
b. $ 17,780
c. Yes, unless there is misappropriation of cash.
$ $ Cash balance according to bank statement 18,470 Adjustments Add: Deposits in Transit 2,830 Less: Outstanding Checks (3,520) Total Adjustment (690) Adjusted Balance 17,780 Cash balance according to company's records 17,360 Adjustments Add: Error in recording check 450 Less: Bank service charges (30) Total Adjustments 420 Adjusted balance 17,780