Bank Reconciliation The following data were accumulated for

Bank Reconciliation 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, $14,600. 2. Cash balance according to the bank statement at August 31, $15,240 3. Checks outstanding, $2,960 4. Deposit in transit, not recorded by bank, $2,380. 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, $30. 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 Adjustments: Total adjustments Adjusted balance Cash balance according to company\'s records Adjustments: Total adjustments Adjusted balance

Solution

Q1. Bank Reconciliation Statement: Cash balance as per bank Statement 15240 Adjustment Less: Outstanding checks -2960 Add: Deposit in transit 2380 Total adjustment -580 Adjusted Balance 14660 Cash balance as per Company\'s record 14600 Adjustment less: Service charges not recorded -30 Add: Error in recocrding the check 90 Total adjustment 60 Adjusted balance 14660