Required information Problem 6-18A (Algo) Preparing a bank reconciliation LO 6-3 [The following information applies to the questions displayed below] Rick Hall owns a card shop: Hall's Cards. The following cash information is available for the month of August Year 1. As of August 31 , the bank statement shows a balance of $12,770. The August 31 unadjusted balance in the Cash account of Hali's Cards is $8,394. A review of the bank statement revealed the following information: 1. A deposit of $1,220 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 $3,250 but was recorded on the books as $4,150. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,785 were found to be outstanding. 4. A debit memo for $89 was included in the bank statement for the purchase of a new supply of checks. Problem 6.18A (Algo) Part a Required a. Prepare a bank reconciliation at the end of August showing the true cash balance. 1. A deposit of $1,220 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 $3,250 but was recorded on the books as $4,150. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,785 were found to be outstanding. 4. A debit memo for $89 was included in the bank statement for the purchase of a new supply of checks. Problem 6-18A (Algo) Part b 2. Prepare any necessary joumal entries to adjust the books to the true cash balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to correct the error created while recording check for inventory. Noter Enter debits belore credits