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 33,000 7/24 DC Advertising Clinic receipts 3,000 8/4 104 Kayaks Clinic receipts 10,500 8/24 DC Office supplies Clinic receipts 13,500 9/1 105 Rent Clinic receipts 18,200 12/8 106 Race permit Race receipts 20,000 12/16 107 Salary 12/31 108 Dividend 12/31 109 Dividend $ 126,500 Amount $ 5,160 1,650 330 11,500 730 32,200 1,830 2,760 1,230 2,000 2,000 2,000 $63,390 Summary of Transactions Beginning Cash Balance July 1, 2021 $ 0 Cash Receipts $126,500 Ending Cash Balance December 31, 2021 $63,110 - Cash Disbursements = $63,390 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 $49,410 SUMMIT BANK Leading You to the Top Account Holder: Great Adventures, Inc. Account Number: Statement Date: Account Summary Beginning Balance Deposits and Credits Withdrawals and Debits July 1, 2021 No Total No Total $0 8 $107,000 11 $57,590 Account Details Deposits and Credits Withdrawals and Debits Date Amount Desc. Date No. Amount Desc. 7/1 $ 20,000 DEP 7/1 101 $ 5,160 CHK 8/1 8,300 DEP 7/7 102 1,650 CHK 8/1 33,000 DEP 7/7 330 DC 9/1 13,500 DEP 7/14 103 11,500 CHK 9/30 200 INT 7/24 730 DC 10/1 13,500 DEP 8/9 104 32,200 CHK 11/1 18,200 DEP 8/24 1,830 DC 12/31 300 INT 9/2 105 2,760 CHK 9/30 100 SF 12/10 106 1,230 CHK 12/31 100 SF Daily Balance Date Amount 7/1 $14,840 7/7 12,860 7/14 1,360 7/24 630 8/1 41,930 8/9 9,730 8/24 7,900 9/1 21,400 9/2 18,640 9/30 18,740 10/1 32,240 11/1 50,440 12/10 49,210 12/31 $49,410 $ 107,000 $57,590 Desc. SF Service fees 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 $49,410 is substantially less than the company's balance of $63,110. 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 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 Record the amounts that increase cash. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31, 2021 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
