Question

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 $11,005. The August 31 unadjusted balance in the Cash account of Hall's Cards is $7.742. A review of the bank statement revealed the following information 1. A deposit of $1720 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 $2.370 but was recorded on the books as $3,270. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4.125 were found to be outstanding 4. A debit memo for $42 was included in the bank statement for the purchase of a new supply of checks. Required a. Prepare a bank reconciliation at the end of August showing the true cash balance. HALL'S CARDS Bank Reconciliation August 31, Yeart Unated Bank Balance August 31. Yet True Cash Balance August 31. Yeart rated Book Balance August 31. Yeart The Cash August 31 Yeart < Prev 21 of 21 No e here to search

Answer 1

	Hall's Cards
	Bank Reconciliation
	August 31, Year 1
	Unadjusted bank balance, August 31, Year 1	$     11,005
Add:	Deposit in transit	$       1,720
Less:	Outstanding checks	$       4,125
	True Balance, August 31, Year 1	$       8,600
	Unadjusted book balance, August 31, Year 1	$       7,742
Add:	Check recording error ($3270 - $2370)	$           900
Less:	Debit memo	$             42
	True Balance, August 31, Year 1	$       8,600