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Problem 6-18A Preparing a bank reconciliation LO 6-3 Rick Hall owns a card shop: Hall’s Cards....

Problem 6-18A Preparing a bank reconciliation LO 6-3
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 $12,025. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $8,595. A review of the bank statement revealed the following information:

  1. A deposit of $1,680 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 $2,225 but was recorded on the books as $3,125.
  3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,240 were found to be outstanding.
  4. A debit memo for $30 was included in the bank statement for the purchase of a new supply of checks.

****Required
a. Prepare a bank reconciliation at the end of August showing the true cash balance.

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