Question

Problem 6-18A Preparing a bank reconciliation LO 6-3
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 $12,025. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $8,595. A review of the bank statement revealed the following information:

1. A deposit of $1,680 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 $2,225 but was recorded on the books as $3,125.
3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,240 were found to be outstanding.
4. A debit memo for $30 was included in the bank statement for the purchase of a new supply of checks.

****b. Prepare any necessary journal entries to adjust the books to the true cash balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

b
	General Journal	Debit	Credit
1	Cash	900		=3125-2225
	Inventory		900
	(To record error in recording check)
2	Office Supplies expense	30
	Cash		30
	(To record purchase of a new supply of checks.)