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	$	4,560
7/15	Clinic receipts		2,000		7/2	102	Legal fees		1,400
7/22	Clinic receipts		2,300		7/7	DC	Advertising		280
7/30	Clinic receipts		4,000		7/8	103	Bikes		11,800
8/1	Borrowing		28,000		7/24	DC	Advertising		680
8/10	Clinic receipts		3,000		8/4	104	Kayaks		25,200
8/17	Clinic receipts		10,500		8/24	DC	Office supplies		1,780
9/21	Clinic receipts		13,000		9/1	105	Rent		2,160
10/17	Clinic receipts		17,700		12/8	106	Race permit		1,180
12/15	Race receipts		20,000		12/16	107	Salary		2,000
					12/31	108	Dividend		2,000
					12/31	109	Dividend		2,000
		$	120,500					$	55,040

	Summary of Transactions
	Beginning												Ending
	Cash Balance												Cash Balance
	July 1, 2021			+	Cash Receipts				Cash Disbursements			=	December 31, 2021
	$	0			$	120,500			$	55,040			$	65,460

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

$101,000

11

$49,240

$51,760

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

$

4,560

CHK

7/1

$

15,440

8/1

8,300

DEP

7/7

102

1,400

CHK

7/7

13,760

8/1

28,000

DEP

7/7

280

DC

7/14

1,960

9/1

13,500

DEP

7/14

103

11,800

CHK

7/24

1,280

9/30

200

INT

7/24

680

DC

8/1

37,580

10/1

13,000

DEP

8/9

104

25,200

CHK

8/9

12,380

11/1

17,700

DEP

8/24

1,780

DC

8/24

10,600

12/31

300

INT

9/2

105

2,160

CHK

9/1

24,100

9/30

100

SF

9/2

21,940

12/10

106

1,180

CHK

9/30

22,040

12/31

100

SF

10/1

35,040

11/1

52,740

12/10

51,560

$

101,000

$

49,240

12/31

$

51,760

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 $51,760 is substantially less than the companys balance of $65,460.

1. 2-a. Prepare Great Adventures bank reconciliation for the six-month period ended December 31, 2021. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.)

1. 2-b. Record any necessary entries to adjust cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Total entries to the same account together when entering in the journal entry carousel.)