Question: Required information Problem 6 - 1 8 A ( Static ) Preparing a bank reconciliation LO 6 - 3 Skip to question [ The following

Required information
Problem 6-18A (Static) Preparing a bank reconciliation LO 6-3
Skip to question
[The following information applies to the questions displayed below.]
Rick Hall owns a card shop: Halls 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 $16,140. The August 31 unadjusted balance in the Cash account of Halls Cards is $14,100. A review of the bank statement revealed the following information:
A deposit of $4,150 on August 31, Year 1, does not appear on the August bank statement.
It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for $4,500 but was recorded on the books as $5,400.
When checks written during the month were compared with those paid by the bank, three checks amounting to $5,370 were found to be outstanding.
A debit memo for $80 was included in the bank statement for the purchase of a new supply of checks.
Problem 6-18A (Static) Part b
b. Prepare any necessary journal entries to adjust the books to the true cash balance.
Note: If no entry is required for a transaction or event, select "No journal entry required" in the first account field.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!