Question

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 36,000 7/24 DC Advertising clinic receipts 3,000 8/4 104 Kayaks clinic receipts 10,500 8/24 Office supplies Clinic receipts 13,800 9/1 105 Rent clinic receipts 18,500 12/8 106 Race permit Race receipts 20,000 12/16 107 Salary 12/31 108 Dividend 12/31 109 Dividend $130, 100 DC Amount $ 5,520 1,800 360 11,000 760 36,400 1,860 3,120 1,260 2,000 2,000 2,000 $68,080 Summary of Transactions Beginning Cash Balance Ending Cash Balance + - July 1, 2021 $ 0 Cash Receipts $ 130, 100 Cash Disbursements $68,080 = December 31, 2021 $ 62,020 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 SUMMIT BANK Leading You to the Top Great Adventures, Inc. Account Holder: Account Number: Statement Date: 1124537774 Dec. 31, 2021

Answer 1

Bank Reconciliation
December 31,2021
Bank's Cash balance		Company's Cash balance
Per bank statement	48320	Per general ledger	62020
Deposits outstanding	20000	Interest earned	500
Checks outstanding	-6000	Service Fees	-200
Bank balance per reconciliation	62320	Company balance per reconciliation	62320

2b
General Journal	Debit	Credit
Cash	500		=200+300
Interest revenue		500
General Journal	Debit	Credit
Service fees expense	200		=100+100
Cash		200

Workings:
Checks outstanding:
107	2000
108	2000
109	2000
Checks outstanding	6000