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 $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:
- A deposit of $1,350 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 $2,240 but was recorded on the books as $3,140.
- 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.
- A debit memo for $50 was included in the bank statement for the purchase of a new supply of checks.