Rick Hall owns a card shop, Hall's Cards. The following cash information is available for...
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Rick Hall owns a card shop, Hall's Cards. The following cash information is available for the month of August, Year 3. As of August 31, the bank statement shows a balance of $10,675. The August 31 unadjusted balance in the Cash account of Hall's Cards is $7,425. A review of the bank statement revealed the following information: 1. A deposit of $1,730 on August 31, Year 3, 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 $1,795 but was recorded on the books as $2,695. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,170 were found to be outstanding. 4. A debit memo for $90 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. (Negative amounts should be indicated with minus sign.) HALL'S CARDS Bank Reconciliation August 31, Year 3 Unadjusted Bank Balance, August 31, Year 3 True Cash Balance, August 31, Year 3 Unadjusted Book Balance, August 31, Year 3 True Cash Balance, August 31, Year 3
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