Question
An examination of the cash activities during the year shows the following. GREAT ADVENTURES Cash Account Records July 1, 2024, to December 31, 2024 Cash
An examination of the cash activities during the year shows the following.
GREAT ADVENTURES | ||||||
---|---|---|---|---|---|---|
Cash Account Records | ||||||
July 1, 2024, to December 31, 2024 | ||||||
Cash Receipts | Cash Disbursements | |||||
Date | Description | Amount | Date | Check number | Description | Amount |
7/1 | Stock sale | $25,000 | 7/1 | 101 | Insurance | $5,280 |
7/15 | Clinic receipts | 2,000 | 7/2 | 102 | Legal fees | 1,700 |
7/22 | Clinic receipts | 1,840 | 7/7 | DC | Advertising | 340 |
7/30 | Clinic receipts | 5,500 | 7/8 | 103 | Bikes | 12,400 |
8/1 | Borrowing | 34,000 | 7/24 | DC | Advertising | 740 |
8/10 | Clinic receipts | 4,000 | 8/4 | 104 | Kayaks | 33,600 |
8/17 | Clinic receipts | 11,200 | 8/24 | DC | Office supplies | 1,840 |
9/21 | Clinic receipts | 13,600 | 9/1 | 105 | Rent | 2,880 |
10/17 | Clinic receipts | 18,300 | 12/8 | 106 | Race permit | 1,240 |
12/15 | Race receipts | 12,000 | 12/16 | 107 | Salary | 1,800 |
12/31 | 108 | Dividend | 2,500 | |||
12/31 | 109 | Dividend | 2,500 | |||
$127,440 | $66,820 |
Summary of Transactions | ||||||
---|---|---|---|---|---|---|
Beginning Cash Balance July 1, 2024 | + | Cash Receipts | Cash Disbursements | = | Ending Cash Balance December 31, 2024 | |
$0 | $127,440 | $66,820 | $60,620 |
Suzie has not reconciled the companys cash balance with that of the bank since the company was started. She asks Summit Bank to 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.
SUMMIT BANK Leading You to the Top | Member FDIC | |||||||
---|---|---|---|---|---|---|---|---|
Account Holder: | Great Adventures, Incorporated | Account Number: | 1124537774 | |||||
Statement Date: | December 31, 2024 | |||||||
Account Summary | ||||||||
Beginning Balance July 1, 2024 | Deposits and Credits | Withdrawals and Debits | Ending Balance December 31, 2024 | |||||
Number | Total | Number | Total | |||||
$0 | 8 | $115,840 | 11 | $60,320 | $55,520 | |||
Account Details | ||||||||
Deposits and Credits | Withdrawals and Debits | Daily Balance | ||||||
Date | Amount | Description | Date | Number | Amount | Description | Date | Amount |
7/1 | $25,000 | DEP | 7/1 | 101 | $5,280 | CHK | 7/1 | $19,720 |
8/1 | 9,340 | DEP | 7/7 | 102 | 1,700 | CHK | 7/7 | 17,680 |
8/1 | 34,000 | DEP | 7/7 | 340 | DC | 7/14 | 5,280 | |
9/1 | 15,200 | DEP | 7/14 | 103 | 12,400 | CHK | 7/24 | 4,540 |
9/30 | 300 | INT | 7/24 | 740 | DC | 8/1 | 47,880 | |
10/1 | 13,600 | DEP | 8/9 | 104 | 33,600 | CHK | 8/9 | 14,280 |
11/1 | 18,300 | DEP | 8/24 | 1,840 | DC | 8/24 | 12,440 | |
12/31 | 100 | INT | 9/2 | 105 | 2,880 | CHK | 9/1 | 27,640 |
9/30 | 150 | SF | 9/2 | 24,760 | ||||
12/10 | 106 | 1,240 | CHK | 9/30 | 24,910 | |||
12/31 | 150 | SF | 10/1 | 38,510 | ||||
11/1 | 56,810 | |||||||
12/10 | 55,570 | |||||||
$115,840 | $60,320 | 12/31 | $55,520 |
Description DEP Customer deposit INT Interest earned SF Service fees CHK Customer check DC Debit card
After comparing the two balances, Suzie has some concern because the banks balance of $55,520 is substantially less than the companys balance of $60,620.
Required:
2-a. Prepare Great Adventures bank reconciliation for the six-month period ended December 31, 2024. 2-b. Record any necessary entries to adjust cash.
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