Great Adventures Problem AP4-1 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 Checkt 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 7/8 193 Bikes Borrowing 35,000 7/24 DC Advertising Clinic receipts 5,100 8/4 104 Kayaks Clinic receipts 11,900 8/24 DC Office supplies Clinic receipts 13,700 9/1 105 Rent Clinic receipts 18,400 12/8 106 Race permit Race receipts 30,000 12/16 107 Salary 12/31 108 Dividend 12/31 199 Dividend $152, 260 Amount $5,40e 1,750 350 12,5ee 750 35,eee 1,850 3,eee 1,250 2, eee 3, eee 3,eee $69,850 Summary of Transactions Beginning Cash Balance July 1, 2021 $ Cash Receipts $152, 260 Ending Cash Balance December 31, 2021 $82,410 Cash Disbursements $69,850 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 $60,610 SUMMIT BANK Leading you to the Top Account Holder: Great Adventures, Inc. Account Number: Statement Date: Account Sunary Beginning Balance Deposits and Credits Withdrawals and Debits July 1, 2021 NO Total No Total se 5122,560 11 561,950 Account Details Deposits and Credits Withdrawals and Debits Date Amount Dese. Date NO Amount Desc 7/1 $ 30,000 DEP 7/1 101 55,400 CHE 8/1 8,160 DEP 7/7 102 1.750 CHK 8/1 35,000 DEP 7/7 350 DC 9/1 17, eee DLP 7/14 103 12,500 CHE 9/30 180 INT 7/24 750 DC 10/1 13,700 DEP 104 35.000 CHK 11/1 18,480 DEP 8/24 1.85e DC 12/31 200 INI 972 105 3.000 CHK 9/30 SF 12/1e 106 1,250 CHE 12/31 5a SH Date 8/9 Daily Balance Amount 7/1 324,600 7/7 22,500 7/14 0.000 7/24 9,250 8/1 52,410 8/9 17,410 8/24 15,560 9/1 32,560 9/2 29,560 9/30 29,610 10/1 43, 310 11/1 61,719 12/10 62,460 12/31 $60,610 $122,560 $61,950 Dese. 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 $60,610 is substantially less than the company's balance of $82.410. 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 reconcillation.) Bank's Cash Balance Per Bank Statement Deposits Outstanding Checks Outstanding GREAT ADVENTURES, INC. Bank Reconciliation December 31, 2021 Company's Cash Balance Per General Ledger Interest Earned Service Fee 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.) View transaction list Journal entry worksheet 1 2 > Record the amounts that increase cash. Note: Enter debits before credits General Journal Debit Credit Date Des 31 2021 Record entry Clear entry View general journal 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.) View transaction list Journal entry worksheet