1 answer

An examination of the cash activities during the year shows the following. GREAT ADVENTURES Cash Account...

Question:

An examination of the cash activities during the year shows the following. GREAT ADVENTURES Cash Account Records July 1, 20212-a. Prepare Great Adventures bank reconciliation for the six-month period ended December 31, 2021. (Amounts to be deductedJournal entry worksheet 1 2 Record the amounts that increase cash. Note: Enter debits before credits. Date General Journal DeJournal entry worksheet 1 2 Record the amounts that decrease cash Note: Enter debits before credits. Date Credit General Jour

An examination of the cash activities during the year shows the following. GREAT ADVENTURES Cash Account Records July 1, 2021, to December 31, 2021 Cash Receipts Cash Disbursements Amount Date Check# Amount Date Desc. Desc. 25,000 7/1 2,000 7/2 7/1 7/15 7/22 Stock sale 101 Insurance 5,640 1,850 Clinic receipts clinic receipts clinic receipts Borrowing Clinic receipts clinic receipts Clinic receipts Legal fees Advertising 102 1,840 7/7 5,500 7/8 DC 370 Bikes 7/30 103 12,700 8/1 Advertising Kayaks Office supplies 37,e00 7/24 DC 770 4,e0e 8/4 11,200 8/24 13,900 9/1 8/10 8/17 37,800 1,870 3,240 1,270 184 DC 9/21 10/17 12/15 105 Rent Clinic receipts Race receipts 18,600 12/8 12,000 12/16 12/31 12/31 Race permit Salary Dividend 106 1,800 2,s00 2,500 107 108 Dividend 109 $131,040 $72,310 Summary of Transactions Beginning Ending Cash Balance Cash Balance -Cash Disbursements December 31, 2021 $58,730 July 1, 2021 Cash Receipts $131,040 $72,310 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 SUMMIT BANK Member FDIC Leading You to the Top Great Adventures, Inc. Account Holder: Account Number: 1124537774 Statement Date: Dec. 31, 2021 Account Summary Withdrawals and Debits Total $65,810 Deposits and Credits Ending Balance December 31, 2021 Beginning Balance July 1, 2021 No Total No $119,440 Account Details $53,630 8 11 Deposits and Credits withdrawals and Debits Daily Balance Amount Desc. Date Amount Desc. Date No. Date Amount 25,000 5,640 1,850 $19,360 17,140 DEP CHK 7/1 8/1 8/1 9/1 7/1 7/7 7/7 101 7/1 7/7 7/14 9,340 DEP 102 CHK 4,440 3,670 50,010 37,000 15,200 DEP 370 DC 7/14 7/24 8/9 12,700 770 DEP 103 CHK 7/24 8/1 8/9 8/24 9/30 10/1 11/1 300 INT DC 13,900 18,600 37,800 DEP 104 СHK 12,210 10,340 25,540 22,300 8/24 9/2 9/30 12/10 DC DEP 1,870 3,240 12/31 100 INT 105 CHK 9/1 9/2 9/30 150 SF 106 22,450 36,350 54,950 1,270 CHK 10/1 11/1 12/31 150 SF 12/10 53,680 $65,810 $119,440 12/31 $53,630 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 bank's balance of $53,630 is substantially less than the company's balance of $58,730.
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 Bank's Cash Balance Company's Cash Balance Per Bank Statement 53,630 Per General Ledger 58,730 $ 12,000 Deposits Outstanding Interest Earned 100 Checks Outstanding Service Fee 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 View journal entry worksheet No Date General Journal Debit Credit Dec. 31, 2021 Cash 1 Interest Revenue Dec. 31, 2021 Service Fee Expense 2 Cash
Journal entry worksheet 1 2 Record the amounts that increase cash. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31, Cash 2021 Interest Revenue Record entry Clear entry View general journal
Journal entry worksheet 1 2 Record the amounts that decrease cash Note: Enter debits before credits. Date Credit General Journal Debit Dec. 31, Service Fee Expense 2021 Cash Record entry Clear entry View general journal

Answers

2a
Bank Reconciliation
December 31,2021
Bank's Cash balance Company's Cash balance
Per bank statement 53630 Per general ledger 58730
Deposits outstanding 12000 Interest earned 400
Checks outstanding -6800 Service Fees -300
Bank balance per reconciliation 58830 Company balance per reconciliation 58830
2b
General Journal Debit Credit
Cash 400 =300+100
       Interest revenue 400
General Journal Debit Credit
Service fees expense 300 =150+150
        Cash 300
.

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