Bob Carson owns a card shop, Card Talk. The following cash information is available for the month of August, 2012.

As of August 31, the bank statement shows a balance of \(\$ 17,000\). The August 31 unadjusted balance in the Cash account of Card Talk is \(\$ 16,000\). A review of the bank statement revealed the following information:

1. A deposit of \(\$ 2,260\) on August 31,2012 , does not appear on the August bank statement.f
2. It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for \(\$ 4,040\) but was recorded on the books as \(\$ 4,400\). Lvror / doposfor
3. When checks written during the month were compared with those paid by the bank, three checks amounting to \(\$ 3,000\) were found to be outstanding. O ust msiding chack
4. A debit memo for \(\$ 100\) was included in the bank statement for the purchase of a new supply of checks. Chargo to ceccount -

Required

a. Prepare a bank reconciliation at the end of August showing the true cash balance.

b. Prepare any necessary journal entries to adjust the books to the true cash balance.