The following Information applies to the questlons displeyed below) Rick Hall ow
ID: 2570212 • Letter: T
Question
The following Information applies to the questlons displeyed below) Rick Hall owns a card shop, Hall's Cards. The following cash Information Is avallable for the month of August 2016. As of August 31, the bank statement shows a balance of $12.940. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,771. A revlew of the bank statement revealed the following Information: 1. A deposit of $1,750 on August 31, 2016, does not appear on the August bank statement. 2. It was discovered that a check to pay for baseball cards was correctly written and pald by the bank for $3,680 but was recorded on the books as $4,580. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,110 were found to be outstanding. 4. A debit memo for $91 was included in the bank statement for the purchase of a new supply of checks. value: 20.00 points Required a. Prepare a bank reconciliation at the end of August showing the true cash balance. HALL'S CARD4 Bank Reconciliation August 31, 2016 Unadjusted Bank Balance, August 31, 2016 True Cash Balance, August 31. 2016 Unadjusted Book Balance, August 31,2016 True Cash Balance, August 31,2016Explanation / Answer
Unadjusted Bank Balance, August 31, 2016 12940 Add: Deposit in Transit 1750 Less: Outstanding Checks -4110 True Cash Balance, August 31, 2016 10580 Unadjusted Book Balance, August 31, 2016 9771 Add: Error in recording check for inventory 900 Less: Debit Memo for new checks -91 True Cash Balance, August 31, 2016 10580