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Question

|Online x how.com/ilm/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator; assign eBook Be Show Me How Calculator Bank Reconciliation The following da ta 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, $20,870. 2. Cash balance according to the bank statement at August 31, $37,600. 3. Checks outstanding, $23,375. 4. Deposit in transit not recorded by bank, $7,500. S. A check for $100 in payment of an account was erroneously recorded in the check register as s1,000. 6. Bank debit memo for service charges, $45. 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: Check My Work 2 more Check Wy Wonk uses remaning ?

Explanation / Answer

Creative design company Bank reconciliation August 31, 20Y6 Cash balance according to bank statement $   37,600 Adjustments: Add: Deposit in transit, not recorded by bank $   7,500 Less: Outstanding cheks $ 23,375 Total Adjustments $ -15,875 Adjusted balance $   21,725 Cash balance according to company's records $   20,870 Adjustments: Add: Error in recording check ($1,000 - $100) $       900 Less: Bank service charges $         45 $         855 Adjusted balance $   21,725