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can someone explain to me why #2 is added to the books as an error? why wouldnt it be subtracted as an error? it was
can someone explain to me why #2 is added to the books as an error? why wouldnt it be subtracted as an error? it was recoreded on the books as $3,590 and the bank correctly paid $2,690
As of August 31, the bank statement shows a balance of $11.285. The August 31 unadjusted balance in the Cash account of Hall's Cards is $8,076. A review of the bank statement revealed the following information: 1. A deposit of $1700 on August 31, Year 1 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 $2,690 but was recorded on the books as $3,590 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,050 were found to be outstanding. 4. A debit memo for $41 was included in the bank statement for the purchase of a new supply of checks. Problem 6-18A (Algo) Parta Required a. Prepare a bank reconciliation at the end of August showing the true cash balance S 11.285 HALL'S CARDS Bank Reconciliation August 31, Year 1 Unadjusted Bank Balance, August 31. Year 1 Add: Deposit in transit Less: Outstanding checks True Cash Balance August 31, Year 1 Unadjusted Book Balance, August 31. Year 1 Add: Error in recording check for inventory Less: Debit memo for new checks True Cash Balance, August 31, Year 1 s 1.700 4,050 8,935 8,076 900 $ $ 8,935 Step by Step Solution
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