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 $13,495. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,835. A review of the bank statement revealed the following information: 1. A deposit of $1,600 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 $3,145 but was recorded on the books as $4,045. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,445 were found to be outstanding. 4. A debit memo for $85 was included in the bank statement for the purchase of a new supply of checks. Problem 6-18A (Algo) Part b 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 $13,495. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,835. A review of the bank statement revealed the following information: 1. A deposit of $1,600 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 $3,145 but was recorded on the books as $4,045. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,445 were found to be outstanding. 4. A debit memo for $85 was included in the bank statement for the purchase of a new supply of checks. Problem 6-18A (Algo) Part b 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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Munabhai

Transcribed Image Text: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 $13,495. The August 31 unadjusted balance in
the Cash account of Hall's Cards is $9,835. A review of the bank statement revealed the following
information:
1. A deposit of $1,600 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 $3,145 but was recorded on the books as $4,045.
3. When checks written during the month were compared with those paid by the bank, three checks
amounting to $4,445 were found to be outstanding.
4. A debit memo for $85 was included in the bank statement for the purchase of a new supply of checks.
Problem 6-18A (Algo) Part b
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.)
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