Rick Hall owns a card shop, Halls Cards. The following cash information is available for the month of August 2018: As of August 31, the bank statement shows a balance of $12,160. The August 31 unadjusted balance in the Cash account of Halls Cards is $8,275. A review of the bank statement revealed the following information:

1. A deposit of $1,350 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 $2,240 but was recorded on the books as $3,140.

3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,385 were found to be outstanding.

4. A debit memo for $50 was included in the bank statement for the purchase of a new supply of checks.

Required

Using Excel prepare a bank reconciliation at the end of August showing the true cash balance. Use a format similar to the example found on page 141 of your text, Exhibit 4.3.

EXHIBIT 4.3 GREEN SHADES RESORTS, INC. Bank Reconciliation September 30, 2018 Unadjusted bank balance, September 30, 2018 Add: Deposits in transit $3,516.45 724.11 25.00 Bank error: Check drawn on Green Valley Resorts charged to GSRI Less: Outstanding checks Check No. 639 646 672 Date Amount Sept. 18 Sept. 20 Sept. 27 13.75 29.00 192.50 (235.25) $4,030.31 $3,361.22 940.00 27.00 (8.40) (289.51) $4,030.31 Total True cash balance, September 30, 2018 Unadjusted book balance, September 30, 2018 Add: Receivable collected by bank Error made by accountant (Check no. 633 recorded as $63.45 instead of $36.45) Less: Bank service charges NSF check True cash balance, September 30, 2018