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 $10,810. The August 31 unadjusted balance in the Cash account of Hall's Cards is $7,235. A review of the bank statement revealed the following information: 1. A deposit of $1,520 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 $3,545 but was recorded on the books as $4,445. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,235 were found to be outstanding. 4. A debit memo for $40 was included in the bank statement for the purchase of a new supply of checks. b. Prepare any necessary journal 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.)
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 $10,810. The August 31 unadjusted balance in the Cash account of Hall's Cards is $7,235. A review of the bank statement revealed the following information: 1. A deposit of $1,520 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 $3,545 but was recorded on the books as $4,445. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,235 were found to be outstanding. 4. A debit memo for $40 was included in the bank statement for the purchase of a new supply of checks. b. Prepare any necessary journal 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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bha
![Required information
[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 $10,810. The August 31 unadjusted balance in the Cash account
of Hall's Cards is $7,235. A review of the bank statement revealed the following information:
1. A deposit of $1,520 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 $3,545 but was
recorded on the books as $4,445.
3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,235
were found to be outstanding.
4. A debit memo for $40 was included in the bank statement for the purchase of a new supply of checks.
b. Prepare any necessary journal 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.)
View transaction list
Journal entry worksheet
B
Record the entry to correct the error created while recording check for
inventory.
hote: Enter debits before credits
Event
1
General Journal
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22a88d94-b338-40a5-92dd-03b573781115%2F6562944e-c5cd-4f64-9f28-71eca0037618%2Fwd2r2uo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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 $10,810. The August 31 unadjusted balance in the Cash account
of Hall's Cards is $7,235. A review of the bank statement revealed the following information:
1. A deposit of $1,520 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 $3,545 but was
recorded on the books as $4,445.
3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,235
were found to be outstanding.
4. A debit memo for $40 was included in the bank statement for the purchase of a new supply of checks.
b. Prepare any necessary journal 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.)
View transaction list
Journal entry worksheet
B
Record the entry to correct the error created while recording check for
inventory.
hote: Enter debits before credits
Event
1
General Journal
Debit
Credit
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