- 2-a. Prepare Great Adventures bank reconciliation for the six-month period ended December 31, 2021.
2. 2-b. Record any necessary entries to adjust cash
An examination of the cash activities during the year shows the following. Date 7/1 7/15 7/22 7/30 8/1 8/10 8/17 9/21 10/17 12/15 Cash Receipts Desc. Stock sale Clinic receipts Clinic receipts Clinic receipts Borrowing Clinic receipts Clinic receipts Clinic receipts Clinic receipts Race receipts GREAT ADVENTURES Cash Account Records July 1, 2021, to December 31, 2021 Cash Disbursements Amount Date Check# Desc. $ 30,000 7/1 101 Insurance 1,809 7/2 102 Legal fees 2,760 7/7 DC Advertising 3,600 7/8 103 Bikes 38,000 7/24 DC Advertising 5,100 8/4 104 Kayaks 11,900 8/24 DC Office supplies 14,000 9/1 105 Rent 18,700 12/8 106 Race permit 30,000 12/16 107 Salary 12/31 108 Dividend 12/31 109 Dividend $155,860 Amount $ 5,760 1,900 380 12,800 780 39,200 1,880 3,360 1,280 2,000 3,000 3,000 $75,340 Summary of Transactions Beginning Cash Balance July 1, 2021 Ending Cash Balance December 31, 2021 $80,520 + Cash Receipts $155,860 Cash Disbursements - $75,340 Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Summit Bank provide her with a six-month bank statement. To save time, Suzie makes deposits at the bank only on the first day of each month. Member FDIC 1124537774 Dec. 31, 2021 Ending Balance December 31, 2021 $58,720 SUPPLIT BANK Leading you to the Top Account Holder: Great Adventures, Inc. Account Number: Statement Date: Account Summary Beginning Balance Deposits and Credits withdrawals and Debits July 1, 2021 No Total No Total $0 8 $126,160 11 $67,440 Account Details Deposits and Credits withdrawals and Debits Date Amount Desc. Date No. Amount 7/1 Desc. $ 30,000 DEP 7/1 101 $ 5,760 CHK 8/1 8,160 7/7 102 1,900 8/1 CHK 38,000 DEP 7/7 380 DC 9/1 17,000 DEP 7/14 103 12,880 CHK 9/30 100 INT 7/24 780 10/1 DC 14,000 DEP 8/9 104 39,200 CHK 11/1 18,700 DEP 8/24 1,880 12/31 DC 200 INT 9/2 105 3,360 CHK 9/30 50 SF 12/10 106 1,280 CHK 12/31 50 SF DEP Daily Balance Date Amount 7/1 $24,240 7/7 21,960 7/14 9,160 7/24 8,380 8/1 54,540 8/9 15,340 8/24 13,460 9/1 30, 460 9/2 27,100 27,150 10/1 41,150 11/1 59,850 12/10 58,570 12/31 $58,720 9/30 $126,160 $67,440 SF Service fees Desc. DEP Customer deposit CHK Customer check INT Interest earned DC Debit card After comparing the two balances, Suzie has some concern because the bank's balance of $58,720 is substantially less than the company's balance of $80,520. GREAT ADVENTURES, INC. Bank Reconciliation December 31, 2021 Company's Cash Balance Per General Ledger Bank's Cash Balance Per Bank Statement Bank Balance Per Reconciliation Company Balance Per Reconciliation Date General Journal Debit Credit Dec. 31, 2021
