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 $ 30,000 7/1 101 Insurance clinic receipts 1,800 7/2 102 Legal fees clinic receipts 2,760 7/7 DC Advertising clinic receipts 3,600 7/8 103 Bikes Borrowing 29,000 7/24 Advertising clinic receipts 5,100 8/4 104 Kayaks clinic receipts 11,900 8/24 DC Office supplies clinic receipts 13,100 9/1 105 Rent Clinic receipts 17,800 12/8 106 Race permit Race receipts 30,000 12/16 107 Salary 12/31 108 Dividend 12/31 109 Dividend $145,060 DC Amount $ 4,680 1,450 290 11,900 690 26,600 1,790 2,280 1,190 2,000 3,000 3,000 $58, 870 Summary of Transactions Beginning Cash Balance Ending Cash Balance July 1, 2021 + - Cash Receipts $145,060 Cash Disbursements $58,870 December 31, 2021 $86,190 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.

Answer 1

Great Adventures Bank Reconciliation is as prepared below:

Great Adventures
Bank Reconciliation
October 31, 2018
Bank's cash balance		Company's cash balance
Per Bank Statement	64390	Per general Ledger	86190
Add: Deposit in transit (30,000)	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	86390	Company balance per reconciliation	86390

2-b.

Date	General Journal	Debit	Credit
Dec. 31, 2018	Cash	300
	Interest revenue		300
	(To record interest earned)
Dec. 31, 2018	Miscellaneous expense	100
	Cash		100
	(To record bank service fees)