Answered step by step
Verified Expert Solution
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 3. As of August 31,
Rick Hall owns a card shop, Hall's Cards. The following cash information is available for the month of August, Year 3. As of August 31, the bank statement shows a balance of $10,470. The August 31 unadjusted balance in the Cash account of Hall's Cards is $7,254. A review of the bank statement revealed the following information: 1. A deposit of $1,630 on August 31, Year 3, 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 $3,585 but was recorded on the books as $4,485. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,040 were found to be outstanding. 4. A debit memo for $94 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 3 Unadjusted Bank Balance, August 31, Year 3 1 True Cash Balance, August 31, Year 3 Unadjusted Book Balance, August 31, Year 3 True Cash Balance, August 31, Year 3
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started