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The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y 1. Cash balance according to the company's records at August 31, $27,720. 2. Cash balance according to the bank statement at August 31, $28,880. 3. Checks outstanding, $5,630. 4. Deposit in transit, not recorded by bank, $4,520. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 6. Bank debit memo for service charges, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Greative Design Co

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y 1. Cash balance according to the company's records at August 31, $27,720. 2. Cash balance according to the bank statement at August 31, $28,880. 3. Checks outstanding, $5,630. 4. Deposit in transit, not recorded by bank, $4,520. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 6. Bank debit memo for service charges, $40. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Greative Design Co

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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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, $27,720. 2. Cash balance according to the bank statement at August 31, $28,880. 3. Checks outstanding, $5,630. 4. Deposit in transit, not recorded by bank, $4,520. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 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 28,880 Add: Deposit in transit on August 31 4,520 5,630 Deduct: Outstanding checks 27,770 Adjusted balance 27,720 Cash balance according to company's records 90 Add: Error in recording check 40 Deduct: Bank service charge 27,770 Adjusted balance
Transcribed Image Text: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, $27,720. 2. Cash balance according to the bank statement at August 31, $28,880. 3. Checks outstanding, $5,630. 4. Deposit in transit, not recorded by bank, $4,520. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 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 28,880 Add: Deposit in transit on August 31 4,520 5,630 Deduct: Outstanding checks 27,770 Adjusted balance 27,720 Cash balance according to company's records 90 Add: Error in recording check 40 Deduct: Bank service charge 27,770 Adjusted balance
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