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Andrews [41]
3 years ago
10

he 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 August 31, $28,800. Cash balance according to the bank statement at August 31, $30,270. Checks outstanding, $5,850. Deposit in transit, not recorded by bank, $4,690. A check for $480 in payment of an account was erroneously recorded in the check register as $840. Bank debit memo for service charges, $50. a. Prepare a bank reconciliation, using the format shown in Exhibit 13.
Business
1 answer:
vekshin13 years ago
6 0

Answer:

                                              Creative Design Co.

                                               Bank Reconciliation

                                                 August 31, 20Y6

Cash balance according to Bank Statement                                   $30,270

Add: Deposit in transit, not recorded by bank                            <u>    $4,690</u>

                                                                                                          $34,960

Less: Outstanding checks                                                           <u>     ($5,850)</u>

Adjusted Balance                                                                             $29,110

Cash balance according to Company's records                             $28,800

Add: Error in recording check (840 - 480)                              <u>          $360    </u>

                                                                                                           $29,160

Less: Bank service costs                                                                 <u>   ($50)     </u>

Adjusted balance                                                                              $29,110

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