Question: rick hall owns a card shop halls cards the following...
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.
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.
A debit memo for $68 was included in the bank statement for the purchase of a new supply of checks.
Prepare a bank reconciliation at the end of August showing the true cash balance.