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 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 39,000 7/24 DC Advertising clinic receipts 3,000 8/4 104 Kayaks clinic receipts 10,500 8/24 DC Office supplies clinic receipts 14,100 9/1 105 Rent clinic receipts 18,800 12/8 106 Race permit Race receipts 20,000 12/16 107 Salary 12/31 108 Dividend 109 Dividend $133,700 Amount $ 5,880 1,950 390 10,000 790 40,600 1,890 3,480 1,290 2,000 2,000 2,000 $72,270 12/31 Summary of Transactions Beginning Cash Balance Ending Cash Balance July 1, 2021 $ 0 = Cash Disbursements $ 72,270 Cash Receipts $ 133,700 December 31, 2021 $61,430 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 $ 47,730 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 $0 8 $114,200 11 $66, 470 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc 7/1 $ 20,000 DEP 7/1 101 $ 5,880 CHK 8/1 8,300 DEP 7/7 102 1,950 CHK 8/1 39,000 DEP 7/7 390 DC 9/1 13,500 DEP 7/14 103 10,000 CHK 9/30 200 INT 7/24 790 DC 10/1 14,100 DEP 8/9 104 40,600 CHK 11/1 18,800 DEP 8/24 1,890 DC 12/31 300 INT 9/2 105 3,480 CHK 9/30 100 SF 12/10 106 1,290 CHK 12/31 100 SF Daily Balance Date Amount 7/1 $14, 120 7/7 11,780 7/14 1,780 7/24 990 8/1 48,290 7,690 8/9 8/24 5,800 9/1 9/2 9/30 10/1 11/1 12/10 12/31 19,300 15,820 15,920 30, 020 48,820 47,530 $ 47,730 $ 114,200 $ 66, 470 SF Service fees Desc. DEP Customer deposit CHK Customer check INT Interest earned DC Debit card After comparing the two balances, Suzie has some concern because the bank's balance of $47,730 is substantially less than the company's balance of $61,430. 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.) 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 Per General Ledger 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.) View transaction list Journal entry worksheet 1 2 > Record the amounts that increase cash. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31, 2021