Question

Great Adventures Problem AP4-1 An examination of the cash activities during the year shows the following. 7/1 GREAT ADVENTURES Cash Account Records July 1, 2021, to December 31, 2021 Cash Receipts Cash Disbursements Date Desc. Amount Date Check# Desc. Amount 2 Stock $ 25,000 7/1 101 Insurance $ 4,920 sale Clinic 7/15 2,000 772 102 Legal fees 1,550 receipts 7/22 Clinic 1,840 7/7 DC Advertising 310 receipts 7/30 clinic 5,500 7/8 103 Bikes 12,100 receipts 8/1 Borrowing 31,000 7/24 DC Advertising 710 Clinic 8/10 4,000 8/4 104 Kayaks 29,400 receipts Clinic Office receipts 11,200 8/24 DC 1,810 supplies Clinic 13,300 9/1 105 Rent 2,520 receipts 10/17 Clinic 18,000 12/8 106 Race permit 1,210 receipts 12,000 12/16 107 Salary 1,800 receipts 12/31 108 Dividend 2,500 12/31 109 Dividend 2,500 $123,840 $61,330 9/21 12/15 Race Summary of Transactions Ending Beginning Cash Balance July 1, 2021 $ 0 + Cash Receipts $123,840 Cash Balance Cash December 31, - Disbursements = 2021 $61,330 $ 62,510

Answer 1

Bank Reconciliation
December 31,2021
Bank's Cash balance		Company's Cash balance
Per bank statement	57410	Per general ledger	62510
Deposits outstanding	12000	Interest earned	400
Checks outstanding	-6800	Service Fees	-300
Bank balance per reconciliation	62610	Company balance per reconciliation	62610
Checks outstanding are Check # 107,108 and 109