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 $12,885. The August 31 unadjusted balance in the Cash account of Hall’s Cards is $9,492. A review of the bank statement revealed the following information: A deposit of $1,670 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 $3,240 but was recorded on the books as $4,140. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,230 were found to be outstanding. A debit memo for $67 was included in the bank statement for the purchase of a new supply of checks.

Prepare any necessary journal entries to adjust the books to the true cash balance.