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 $ 20,000 7/1 101 Insurance Clinic receipts 2.000 7/2 102 Legal fees Clinic receipts 2,300 7/7 DC Advertising Clinic receipts 4,000 7/8 103 Bikes Borrowing 30,000 7/24 DC Advertising Clinic receipts 3,000 8/4 104 Kayaks Clinic receipts 10,500 8/24 DC Office supplies Clinic receipts 13,200 9/1 105 Rent 17.900 Clinic receipts 12/8 106 Race permit 12/16 20.000 107 Salary Race receipts 12/31 108 Dividend 12/31 109 Amount $ 4.800 1.500 300 12.000 700 28.000 1.800 2,400 1,200 2,000 2.000 2,000 $58,700 Dividend $122.900 SUMMARY OF TRANSACTIONS Ending Cash Balance December 31, 2021 $64,200 Beginning Cash Balance July 1, 2021 $0 Cash Disbursements $58,700 Cash Receipts $122,900 + 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. After comparing the two balances, Suzie has some concern because the bank's balance of $50,500 is substantially less than the company's balance of $64,200. Required: 1. Discuss any problems you see with Great Adventures internal control procedures related to cash. 2. Prepare Great Adventures' bank reconciliation for the six-month period ended December 31, 2021, and any necessary entries to adjust cash. 3. How did failure to reconcile the bank statement affect the reported amounts for assets, liabilities, stockholders' equity, revenues, and expenses? 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 $ 20,000 7/1 101 Insurance Clinic receipts 2.000 7/2 102 Legal fees Clinic receipts 2,300 7/7 DC Advertising Clinic receipts 4,000 7/8 103 Bikes Borrowing 30,000 7/24 DC Advertising Clinic receipts 3,000 8/4 104 Kayaks Clinic receipts 10,500 8/24 DC Office supplies Clinic receipts 13,200 9/1 105 Rent 17.900 Clinic receipts 12/8 106 Race permit 12/16 20.000 107 Salary Race receipts 12/31 108 Dividend 12/31 109 Amount $ 4.800 1.500 300 12.000 700 28.000 1.800 2,400 1,200 2,000 2.000 2,000 $58,700 Dividend $122.900 SUMMARY OF TRANSACTIONS Ending Cash Balance December 31, 2021 $64,200 Beginning Cash Balance July 1, 2021 $0 Cash Disbursements $58,700 Cash Receipts $122,900 + 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. After comparing the two balances, Suzie has some concern because the bank's balance of $50,500 is substantially less than the company's balance of $64,200. Required: 1. Discuss any problems you see with Great Adventures internal control procedures related to cash. 2. Prepare Great Adventures' bank reconciliation for the six-month period ended December 31, 2021, and any necessary entries to adjust cash. 3. How did failure to reconcile the bank statement affect the reported amounts for assets, liabilities, stockholders' equity, revenues, and expenses