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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 $12,160. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $8,275. A review of the bank statement revealed the following information:

  1. A deposit of $1,350 on August 31, 2018, 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 $2,240 but was recorded on the books as $3,140.
  3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,385 were found to be outstanding.
  4. A debit memo for $50 was included in the bank statement for the purchase of a new supply of checks.
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