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An examination of the cash activities during the year shows the following. Suzie has not reconciled the company's cash balance with that of the bank
An examination of the cash activities during the year shows the following.
Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Summit Bank to
provide her with a sixmonth bank statement. To save time, Suzie makes deposits at the bank only on the first day of each month.An examination of the cash activities during the year shows the following.
GREAT ADVENTURES
Cash Account Records
July to December
Cash Receipts Cash Disbursements
Date Description Amount Date Check number Description Amount
Stock sale $ Insurance $
Clinic receipts Legal fees
Clinic receipts DC Advertising
Clinic receipts Bikes
Borrowing DC Advertising
Clinic receipts Kayaks
Clinic receipts DC Office supplies
Clinic receipts Rent
Clinic receipts Race permit
Race receipts Salary
Dividend
Dividend
$ $
Summary of Transactions
Beginning Cash Balance July Cash Receipts Cash Disbursements Ending Cash Balance December
$ $ $ $
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 sixmonth 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:
Statement Date: December
Account Summary
Beginning Balance
July Deposits and Credits Withdrawals and Debits Ending Balance December
Number Total Number Total
$ $ $ $
Account Details
Deposits and Credits Withdrawals and Debits Daily Balance
Date Amount Description Date Number Amount Description Date Amount
$ DEP $ CHK $
DEP CHK
DEP DC
DEP CHK
INT DC
DEP CHK
DEP DC
INT CHK
SF
CHK
SF
$ $ $
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 $ is substantially less than the companys balance of $
Required:
a Prepare Great Adventures bank reconciliation for the sixmonth period ended December
b Record any necessary entries to adjust cash.
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