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 $11,540. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $7,328. A review of the bank statement revealed the following information: A deposit of $1,030 on August 31, Year 3, 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 $2,185 but was recorded on the books as $3,085. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,440 were found to be outstanding. A debit memo for $98 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
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 $11,540. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $7,328. A review of the bank statement revealed the following information:
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A deposit of $1,030 on August 31, Year 3, 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 $2,185 but was recorded on the books as $3,085.
-
When checks written during the month were compared with those paid by the bank, three checks amounting to $4,440 were found to be outstanding.
-
A debit memo for $98 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
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