accounting 4,2

Instructions

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:

● Cash balance according to the company’s records at Aug. 31, $20,870 ● Cash balance according to the bank statement at Aug. 31, $37,600 ● Checks outstanding, $23,375 ● Deposit in transit not recorded by bank, $7,500 ● A check for $100 in payment of an account was erroneously recorded in the

check register as $1,000 ● Bank debit memo for service charges, $45

Prepare a bank reconciliation as shown in Exhibit 13 in the textbook found on page 353.