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	$30,000	7/1	101	Insurance	$3,960
7/15	Clinic receipts	1,800	7/2	102	Legal fees	1,150
7/22	Clinic receipts	2,760	7/7	DC	Advertising	230
7/30	Clinic receipts	3,600	7/8	103	Bikes	11,300
8/1	Borrowing	23,000	7/24	DC	Advertising	630
8/10	Clinic receipts	5,100	8/4	104	Kayaks	18,200
8/17	Clinic receipts	11,900	8/24	DC	Office supplies	1,730
9/21	Clinic receipts	12,500	9/1	105	Rent	1,560
10/17	Clinic receipts	17,200	12/8	106	Race permit	1,130
12/15	Race receipts	30,000	12/16	107	Salary	2,000
			12/31	108	Dividend	3,000
			12/31	109	Dividend	3,000
		$137,860				$47,890

Summary of Transactions
Beginning Cash Balance July 1, 2024	+	Cash Receipts		Cash Disbursements	=	Ending Cash Balance December 31, 2024
$0		$137,860		$47,890		$89,970

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		$108,160	11	$39,990	$68,170
Account Details
Deposits and Credits			Withdrawals and Debits				Daily Balance
Date	Amount	Description	Date	Number	Amount	Description	Date	Amount
7/1	$30,000	DEP	7/1	101	$3,960	CHK	7/1	$26,040
8/1	8,160	DEP	7/7	102	1,150	CHK	7/7	24,660
8/1	23,000	DEP	7/7		230	DC	7/14	13,360
9/1	17,000	DEP	7/14	103	11,300	CHK	7/24	12,730
9/30	100	INT	7/24		630	DC	8/1	43,890
10/1	12,500	DEP	8/9	104	18,200	CHK	8/9	25,690
11/1	17,200	DEP	8/24		1,730	DC	8/24	23,960
12/31	200	INT	9/2	105	1,560	CHK	9/1	40,960
			9/30		50	SF	9/2	39,400
			12/10	106	1,130	CHK	9/30	39,450
			12/31		50	SF	10/1	51,950
							11/1	69,150
							12/10	68,020
	$108,160				$39,990		12/31	$68,170

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 $68,170 is substantially less than the companys balance of $89,970.

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.

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