RWP4-1 (Algo) Great Adventures Continuing Case

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

GREAT ADVENTURES
Cash Account Records
July 1, 2024, to December 31, 2024
Cash Receipts	Cash Disbursements
Date	Description	Amount	Date	Check number	Description	Amount
7/1	Stock sale	$25,000	7/1	101	Insurance	$4,920
7/15	Clinic receipts	2,000	7/2	102	Legal fees	1,550
7/22	Clinic receipts	1,840	7/7	DC	Advertising	310
7/30	Clinic receipts	5,500	7/8	103	Bikes	12,100
8/1	Borrowing	31,000	7/24	DC	Advertising	710
8/10	Clinic receipts	4,000	8/4	104	Kayaks	29,400
8/17	Clinic receipts	11,200	8/24	DC	Office supplies	1,810
9/21	Clinic receipts	13,300	9/1	105	Rent	2,520
10/17	Clinic receipts	18,000	12/8	106	Race permit	1,210
12/15	Race receipts	12,000	12/16	107	Salary	1,800
			12/31	108	Dividend	2,500
			12/31	109	Dividend	2,500
		$123,840				$61,330

Summary of Transactions
Beginning Cash Balance July 1, 2024	+	Cash Receipts		Cash Disbursements	=	Ending Cash Balance December 31, 2024
$0		$123,840		$61,330		$62,510

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, Incorporated	Account Number:	1124537774
Statement Date:	December 31, 2024
Account Summary
Beginning Balance July 1, 2024	Deposits and Credits	Withdrawals and Debits	Ending Balance December 31, 2024
Number	Total	Number	Total
$0	8	$112,240	11	$54,830	$57,410
Account Details
Deposits and Credits	Withdrawals and Debits	Daily Balance
Date	Amount	Description	Date	Number	Amount	Description	Date	Amount
7/1	$25,000	DEP	7/1	101	$4,920	CHK	7/1	$20,080
8/1	9,340	DEP	7/7	102	1,550	CHK	7/7	18,220
8/1	31,000	DEP	7/7		310	DC	7/14	6,120
9/1	15,200	DEP	7/14	103	12,100	CHK	7/24	5,410
9/30	300	INT	7/24		710	DC	8/1	45,750
10/1	13,300	DEP	8/9	104	29,400	CHK	8/9	16,350
11/1	18,000	DEP	8/24		1,810	DC	8/24	14,540
12/31	100	INT	9/2	105	2,520	CHK	9/1	29,740
			9/30		150	SF	9/2	27,220
			12/10	106	1,210	CHK	9/30	27,370
			12/31		150	SF	10/1	40,670
							11/1	58,670
							12/10	57,460
	$112,240				$54,830		12/31	$57,410

Description 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 $57,410 is substantially less than the companys balance of $62,510.

Required:

2-a. Prepare Great Adventures bank reconciliation for the six-month period ended December 31, 2024. 2-b. Record any necessary entries to adjust cash.