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Question: rick hall owns a card shop halls cards the following...
Question details
Rick Hall owns a card shop, Hall’s Cards. The following cash
information is available for the month of August 2018:
As of August 31, the bank statement shows a balance of $13,470. The
August 31 unadjusted balance in the Cash account of Hall’s Cards is
$9,528. A review of the bank statement revealed the following
information:
-
A deposit of $1,210 on August 31, 2018, does not appear on the August bank statement.
-
It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for $3,810 but was recorded on the books as $4,710.
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When checks written during the month were compared with those paid by the bank, three checks amounting to $4,320 were found to be outstanding.
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A debit memo for $68 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.
Solution by an expert tutor
