Question

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.

Answer 1

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