Question

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 August 31, $27,070. What is the cash balance according to the company's records at August 31, 20Y6?

1) $27,070
2) $20,670
3) $30,070
4) $27,670

Answer 1

The cash balance according to Creative Design Co.'s records on August 31, 20Y6, is $27,070, which is option 1.

Step-by-step explanation:

The cash balance according to the company's records of Creative Design Co. for August 31, 20Y6, is $27,070. Therefore, the correct answer to the question is option 1, $27,070. This figure represents the amount reported by the company before any reconciliation adjustments are made to address any discrepancies between the company's records and the bank statement.

Reconciliation may include adjustments for outstanding checks, deposits in transit, bank fees, or any errors in recording transactions. The provided bank balance sheets and T-account examples illustrate various aspects of a balance sheet but are not directly relevant to the question about Creative Design Co.'s cash balance on August 31, 20Y6.