Reference no: EM133102694

Question - 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 $13,180. The August 31 unadjusted balance in the Cash account of Hall's Cards 6 is $9,456. A review of the bank statement revealed the following information:

1. A deposit of $1,700 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 $2,695 but was recorded on El the books as $3,595.

3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,585 were found to be outstanding.

4. A debit memo for $61 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.