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,
$18,257. |
| 2. |
Cash balance according to the bank statement at August 31,
$27,261. |
| 3. |
Checks outstanding, $14,624. |
| 4. |
Deposit in transit, not recorded by bank, $6,131. |
| 5. |
A check for $58 in payment of an account was erroneously
recorded in the check register as $580. |
| 6. |
Bank debit memo for service charges, $11. |
| A. |
Prepare a bank reconciliation, using the format shown in
Exhibit 13
. Refer to the Amount Descriptions list provided for the exact
wording of the answer choices for text entries. For those boxes in
which you must enter subtracted 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 reconciliation always balance (reconcile)? |
| Amount Descriptions |
|
| Adjusted balance |
|
| Bank service charge |
|
| Bank error in charging check as $58 instead of $580 |
|
| Bank error in charging check as $580 instead of $58 |
|
| Deposit in transit, not recorded by bank |
|
| Error in recording check as $58 instead of $580 |
|
| Error in recording check as $580 instead of $58 |
|
| Outstanding checks |
|
| Total adjustments |
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 reconciliation always balance (reconcile)?
Yes
No
