Rick Hall owns a card shop, Hall’s Cards. The following cash information is available for the month of August 2016. As of August 31, the bank statement shows a balance of $16,140. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $14,100. A review of the bank statement revealed the following information: 1. A deposit of $4,150 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 paid by the bank for $4,500 but was recorded on the books as $5,400. 3. 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. 4. A debit memo for $80 was included in the bank statement for the purchase of a new supply of checks.

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

b. Prepare any necessary journal entries to adjust the books to the true cash balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)