Question

This is the info I inputted and was marked wrong. Please help and explain why what amount of money goes where

Rick Hall owns a card shop, Hall's Cards. The following cash information is available for the month of August 2018: As of August 31, the bank statement shows a balance of $13,835. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,403. A review of the bank statement revealed the following information: 1. A deposit of $1,400 on August 31, 2018, does not appear on the August bank statement. 2. It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for $3,165 but was recorded on the books as $4,065. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $5,000 were found to be outstanding. 4. A debit memo for $68 was included in the bank statement for the purchase of a new supply of checks. Required Prepare a bank reconciliation at the end of August showing the true cash balance. HALL'S CARDS Bank Reconciliation August 31, 2018 Unadjusted Bank Balance, August 31, 2018 Add: Deposit in transit Add: Outstanding checks True Cash Balance, August 31, 2018 Unadjusted Book Balance, August 31, 2018 Less: Error in recording check for inventory Less: Debit memo for new checks True Cash Balance, August 31, 2018 $ $ 900 5,000 (4,100) 9,403 1,400 $ 10,735

Answer 1

Hali's Cards Bank Reconciliation 31 August. 2018 Unadjusted Bank Balance Aug 31,2018 Add: Deposit in transit Less : Outstanding checks True cash Balance, August 31 2018 Unadjusted Book Balance Aug 31,2018 Add: Error in recording check for inventory less : Debit memo for new checks True cash Balance, August 31 2018 $ 13,835.00 $ 1,400.00 $ (5,000.00) $ 10,235.00 $ 9,403.00 $ 900.00 (4065-3165) $ (68.00) $ 10,235.00