Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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,

image text in transcribed
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 $13,700. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,039. A review of the bank statement revealed the following information: 1. A deposit of $1,120 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 $2,940 but was recorded on the books as $3,840 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,915 were found to be outstanding 4. A debit memo for $34 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. (Negative amounts should be indicated with minus sign.) HALL'S CARDS Bank Reconciliation August 31, Year 1 Unadjusted Bank Balance, August 31. Year 1 True Cash Balance, August 31, Yoar 1 Unadjusted Book Balance, August 31, Year 1 True Cash Balance August 31. Year 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Security And Controls Of Windows Active Directory Domains

Authors: Derek Melber

1st Edition

0894135635, 978-0894135637

More Books

Students also viewed these Accounting questions