Rick Hall owns a card shop, Hall\'s Cards. The following cash information is ava

Question

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 $13,235. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,406. A review of the bank statement revealed the following information: 1. A deposit of $1,010 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 $3150 but was recorded on the books as $4,050 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,030 were found to be outstanding. 4. A debit memo for $91 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 HALL'S CARDS Bank Reconciliation August 31, 2018 Unadjusted Bank Balance, August 31, 2018 True Cash Balance, August 31, 2018 Unadjusted Book Balance, August 31, 2018 True Cash Balance, August 31, 2018

Explanation / Answer

2)

Bank Reconcilation unadjusted bank balace 13235 Deposit in transit 1010 outstanding checks (4030) True cash balance 31 august 2018 10215 unadjusted book balance 9406 Error in recording check for payment [4050-3150] 900 bank service charge (91) True cash balance 10215

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