Question

As of August 31, the bank statement shows a balance of $13,565. The August 31 unadjusted balance in the Cash account of Hall's Cards is $10,017. A review of the bank statement revealed the following information: 1. A deposit of $1,790 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 $1,955 but was recorded on the books as $2,855. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,520 were found to be outstanding. 4. A debit memo for $82 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, Year 1 Unadjusted Bank Balance, August 31, Year 1 True Cash Balance, August 31, Year 1 Unadjusted Book Balance, August 31, Year 1 True Cash Balance, August 31, Year 1

Answer 1

Bank Reconciliation

Unadjusted bank balance, August 31, year 1	13565
Add: Deposit in transit	1790
Less: Outstanding Check	-4520
True Cash balance, August 31, Year 1	10835
Unadjusted book balance, August 31, Year 1	10017
Add: Error in Check	900
Less: New supply purchase	-82
True cash balance, August 31, Year 1	10835