Question

Help Sav Required information [The following information applies to the questions displayed below) Rick Hall owns a card shop: Hall's Cards. The following cash information is available for the month of August Year 1 As of August 31, the bank statement shows a balance of $14,520. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,945. A review of the bank statement revealed the following information: 1. A deposit of $1,170 on August 31, Year 1, 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 $3,280 but was recorded on the books as $4,180. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,930 were found to be outstanding. 4. A debit memo for $85 was included in the bank statement for the purchase of a new supply of checks. equired Prepare a bank recondotation at the end of August showing the true cash balance. HALL'S CARDS Bank Reconciliation August 31, Year 1 nadjusted Bank Balance, August 31, Year 1 < Prev 21 of 21 Next

Answer 1

Question requires us to prepare Bank reconciliation, which is as follows:

Sol. Hall's Card Bank Reconciliation Statement August 31, dear Unadjusted Bank Bal. Aug 3 deposits which does not appear outstanding aheques, which will be paid Treue Balance ot Cash, Aug. 21, year J0,760 520 year L 4,930 Unadjusted Book Ba. Aug G+ Rectitication o error Lu1g0- 3280] Debit memo Roe tha purchase news Supply chaques/che cks 31, 9,945 goo 85 Tue Cosh Batance, Aug 31, yeart