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 GREAT ADVENTURES Cash Account Records July 1, 2021, to December 31, 2021 Cash Receipts Cash Disbursements Desc. Amount Date Check# Desc. Stock sale $ 30,000 7/1 101 Insurance clinic receipts 1,800 7/2 102 Legal fees clinic receipts 2,760 7/7 DC Advertising clinic receipts 3,600 7/8 103 Bikes Borrowing 29,000 7/24 Advertising clinic receipts 5,100 8/4 104 Kayaks clinic receipts 11,900 8/24 DC Office supplies clinic receipts 13,100 9/1 105 Rent Clinic receipts 17,800 12/8 106 Race permit Race receipts 30,000 12/16 107 Salary 12/31 108 Dividend 12/31 109 Dividend $145,060 DC Amount $ 4,680 1,450 290 11,900 690 26,600 1,790 2,280 1,190 2,000 3,000 3,000 $58, 870 Summary of Transactions Beginning Cash Balance Ending Cash Balance July 1, 2021 + - Cash Receipts $145,060 Cash Disbursements $58,870 December 31, 2021 $86,190 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 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 $64, 390 $0 SUMMIT BANK Leading You to the Top Account Holder: Great Adventures, Inc. Account Number: Statement Date: Account Summary Withdrawals and Beginning Balance Deposits and Credits Debits July 1, 2021 No Total No Total 8 $115,360 11 $50,970 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 7/1 $ 30,000 DEP 7/1 101 $ 4,680 CHK 8/1 8,160 DEP 7/7 102 1,450 8/1 29,000 DEP 7/7 290 DC 9/1 17,000 DEP 7/14 11,900 CHK 9/30 100 INT 7/24 690 DC 10/1 13,100 DEP 8/9 26,600 CHK 11/1 17,800 DEP 8/24 1,790 12/31 200 INT 9/2 105 2,280 CHK 9/30 50 SF 12/10 1,190 CHK 12/31 CHK 104 DC Daily Balance Date Amount 7/1 $ 25, 320 7/7 23,580 7/14 11,680 7/24 10,990 8/1 48,150 8/9 21,550 8/24 19,760 9/1 36,760 9/2 34,480 9/30 34,530 10/1 47,630 11/1 65, 430 12/10 64,240 12/31 $64,390 50 $115, 360 $50,970 Desc. DEP Customer deposit CHK Customer check INT Interest earned DC Debit card SF Service fees After comparing the two balances, Suzie has some concern because the bank's balance of $64,390 is substantially less than the company's balance of $86,190. 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.) GREAT ADVENTURES, INC. Bank Reconciliation December 31, 2021 Company's Cash Balance $ 64,390 Per General Ledger $ 86,190 Bank's Cash Balance Per Bank Statement Deposits Outstanding Checks Outstanding Bank Balance Per Reconciliation Company Balance Per Reconciliation 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.)
