Question
An examination of the cash activities during the year shows the following. GREAT ADVENTURES Cash Account Records July 1, 2021, to December 31, 2021 Cash
An examination of the cash activities during the year shows the following.
GREAT ADVENTURES | ||||||||||
Cash Account Records | ||||||||||
July 1, 2021, to December 31, 2021 | ||||||||||
Cash Receipts | Cash Disbursements | |||||||||
Date | Desc. | Amount | Date | Check# | Desc. | Amount | ||||
7/1 | Stock sale | $ | 20,000 | 7/1 | 101 | Insurance | $ | 4,800 | ||
7/15 | Clinic receipts | 2,000 | 7/2 | 102 | Legal fees | 1,500 | ||||
7/22 | Clinic receipts | 2,300 | 7/7 | DC | Advertising | 300 | ||||
7/30 | Clinic receipts | 4,000 | 7/8 | 103 | Bikes | 12,000 | ||||
8/1 | Borrowing | 30,000 | 7/24 | DC | Advertising | 700 | ||||
8/10 | Clinic receipts | 3,000 | 8/4 | 104 | Kayaks | 28,000 | ||||
8/17 | Clinic receipts | 10,500 | 8/24 | DC | Office supplies | 1,800 | ||||
9/21 | Clinic receipts | 13,200 | 9/1 | 105 | Rent | 2,400 | ||||
10/17 | Clinic receipts | 17,900 | 12/8 | 106 | Race permit | 1,200 | ||||
12/15 | Race receipts | 20,000 | 12/16 | 107 | Salary | 2,000 | ||||
12/31 | 108 | Dividend | 2,000 | |||||||
12/31 | 109 | Dividend | 2,000 | |||||||
$ | 122,900 | $ | 58,700 | |||||||
Summary of Transactions | ||||||||||||||||
Beginning | Ending | |||||||||||||||
Cash Balance | Cash Balance | |||||||||||||||
July 1, 2021 | + | Cash Receipts | Cash Disbursements | = | December 31, 2021 | |||||||||||
$ | 0 | $ | 122,900 | $ | 58,700 | $ | 64,200 | |||||||||
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 | Member FDIC | ||||||||||||||||||||||||
Leading You to the Top | |||||||||||||||||||||||||
Account Holder: | Great Adventures, Inc. | Account Number: | 1124537774 | ||||||||||||||||||||||
Statement Date: | Dec. 31, 2021 | ||||||||||||||||||||||||
Account Summary | |||||||||||||||||||||||||
Beginning Balance | Deposits and Credits | Withdrawals and Debits | Ending Balance | ||||||||||||||||||||||
July 1, 2021 | No | Total | No | Total | December 31, 2021 | ||||||||||||||||||||
$0 | 8 | $103,400 | 11 | $52,900 | $50,500 | ||||||||||||||||||||
Account Details | |||||||||||||||||||||||||
Deposits and Credits | Withdrawals and Debits | Daily Balance | |||||||||||||||||||||||
Date | Amount | Desc. | Date | No. | Amount | Desc. | Date | Amount | |||||||||||||||||
7/1 | $ | 20,000 | DEP | 7/1 | 101 | $ | 4,800 | CHK | 7/1 | $ | 15,200 | ||||||||||||||
8/1 | 8,300 | DEP | 7/7 | 102 | 1,500 | CHK | 7/7 | 13,400 | |||||||||||||||||
8/1 | 30,000 | DEP | 7/7 | 300 | DC | 7/14 | 1,400 | ||||||||||||||||||
9/1 | 13,500 | DEP | 7/14 | 103 | 12,000 | CHK | 7/24 | 700 | |||||||||||||||||
9/30 | 200 | INT | 7/24 | 700 | DC | 8/1 | 39,000 | ||||||||||||||||||
10/1 | 13,200 | DEP | 8/9 | 104 | 28,000 | CHK | 8/9 | 11,000 | |||||||||||||||||
11/1 | 17,900 | DEP | 8/24 | 1,800 | DC | 8/24 | 9,200 | ||||||||||||||||||
12/31 | 300 | INT | 9/2 | 105 | 2,400 | CHK | 9/1 | 22,700 | |||||||||||||||||
9/30 | 100 | SF | 9/2 | 20,300 | |||||||||||||||||||||
12/10 | 106 | 1,200 | CHK | 9/30 | 20,400 | ||||||||||||||||||||
12/31 | 100 | SF | 10/1 | 33,600 | |||||||||||||||||||||
11/1 | 51,500 | ||||||||||||||||||||||||
12/10 | 50,300 | ||||||||||||||||||||||||
$ | 103,400 | $ | 52,900 | 12/31 | $ | 50,500 | |||||||||||||||||||
Desc. | 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 $50,500 is substantially less than the companys balance of $64,200.
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Record any necessary entries to adjust cash. (Record amounts that increase cash and amounts decrease cash - two entries)
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