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# Date Desc. Desc Amount Stock sale 30,000 7/1 1,800 7/2 2,760 7/7 3,600 7/8 38,000 7/24 5,100 8/4 11,900 8/24 14,000 9/1 18,700 12/8 30,000 12/16 12/31 12/31 $5,760 7/1 7/15 7/22 7/30 8/1 8/10 8/17 9/21 10/17 12/15 101 Insurance clinic receipts clinic receipts clinic receipts Borrowing clinic receipts clinic receipts clinic receipts clinic receipts Race receipts Legal fees Advertising Bikes 102 1,900 DC 380 103 12,800 Advertising Каyaks Office supplies DC 780 104 39,200 1,880 3,360 1,280 2,000 3, е0е 3,000 $75,340 DC 105 Rent Race permit Salary Dividend 106 107 108 Dividend 109 $155,860

Answer 1

Bank Reconciliation is as prepared below:

Great Adventures
Bank Reconciliation
December 31, 2021
Bank's cash balance		Company's cash balance
Per Bank Statement	58,720	Per general Ledger	80,520
Add: Deposit in transit	30,000	Less: Bank Service fees	-100
Less: Outstanding checks		Add: Interest on Balance	300
Check 107	-2,000
Check 108	-3,000
Check 109	-3,000
Bank balance as per reconciliation	80,720	Company balance per reconciliation	80,720

Journal entries are as prepared below:

Date	Particulars	L.F	Amount ($)	Amount ($)
Dec-31	Bank Service Charges		100.00
	Cash			100
	(for bank charges)
Dec-31	Cash		300.00
	Interest Revenue			300.00
	(For interest recorded)