Great Adventures Problems 4-1

An examination of the cash activities during the year shows the following.

GREAT ADVENTURES Cash Account Records July 1, 2015, to December 31, 2015
Deposits				Checks/Debit Cards
Date	Desc.	Amount		Date	No.	Desc.	Amount
7/1	Stock sale	$	25,000	7/1	101	Insurance	$	5,280
7/15	Clinic receipts		2,000	7/2	102	Legal fees		1,700
7/22	Clinic receipts		1,840	7/7	DC	Advertising		340
7/30	Clinic receipts		5,500	7/8	103	Bikes		12,400
8/1	Borrowing		34,000	7/24	DC	Advertising		740
8/10	Clinic receipts		4,000	8/4	104	Kayaks		33,600
8/17	Clinic receipts		11,200	8/24	DC	Office supplies		1,840
9/21	Clinic receipts		13,600	9/1	105	Rent		2,880
10/17	Clinic receipts		18,300	12/8	106	Race permit		1,240
12/15	Race receipts		12,000	12/16	107	Salary		1,800
				12/31	108	Dividend		2,500
				12/31	109	Dividend		2,500
		$	127,440				$	66,820

Summary of Transactions

Beginning Cash Balance July 1, 2015	+	Deposits	?	Checks	=	Ending Cash Balance December 31, 2015
$0		$127,440		$66,820		$60,620

Suzie has not reconciled the companys 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.

SUMMIT BANK Leading You to the Top									Member FDIC
Account Holder:			Great Adventures, Inc.				Account Number: Statement Date:		1124537774 Dec. 31, 2015
Account Summary
Beginning Balance			Deposits and Credits				Withdraws and Debits		Ending Balance
July 1, 2015			No Total				No Total		December 31, 2015
$0			8		$115,840		11	$60,320	$55,520
Account Details
Deposits and Credits				Withdraws and Debits					Daily Balance
Date	Amount		Desc.	Date	No.	Amount		Desc.	Date	Amount
7/1	$	25,000	DEP	7/1	101	$	5,280	CHK	7/1	$	19,720
8/1		9,340	DEP	7/7	102		1,700	CHK	7/7		17,680
8/1		34,000	DEP	7/7			340	DC	7/14		5,280
9/1		15,200	DEP	7/14	103		12,400	CHK	7/24		4,540
9/30		300	INT	7/24			740	DC	8/1		47,880
10/1		13,600	DEP	8/9	104		33,600	CHK	8/9		14,280
11/1		18,300	DEP	8/24			1,840	DC	8/24		12,440
12/31		100	INT	9/2	105		2,880	CHK	9/1		27,640
				9/30			150	SF	9/2		24,760
				12/10	106		1,240	CHK	9/30		24,910
				12/31			150	SF	10/1		38,510
									11/1		56,810
									12/10		55,570
	$	115,840				$	60,320		12/31	$	55,520

Desc.	DEP Customer deposit	INT Interest earned	SF Service fees
	CHK Customer check	DC Debit card

After comparing the two balances, Suzie has some concern because the banks balance of $55,520 is substantially less than the companys balance of $60,620.

2-a.	Prepare Great Adventures bank reconciliation for the six-month period ended December 31, 2015.

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.)