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 $10,160. The August 31 unadjusted balance in the Cash account of Hall's C is $7,285. A review of the bank statement revealed the following information: 1. A deposit of $2,000 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 $2,040 but was recorded the books as $2,940. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,060 were fou to be outstanding. 4. A debit memo for $85 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.)

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 $10,160. The August 31 unadjusted balance in the Cash account of Hall's C is $7,285. A review of the bank statement revealed the following information: 1. A deposit of $2,000 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 $2,040 but was recorded the books as $2,940. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,060 were fou to be outstanding. 4. A debit memo for $85 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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