Question

5.00 points Great Adventures Problems 4-1 An examination of the cash activities during the year shows the following GREAT ADVENTURES Cash Account Records July 1, 2018, to December 31, 2018 Deposits Checks/Debit Cards Date Desc. Amount Date No. Desc. S 25,000 71 10 nsurance Amount 5,280 1,700 340 2,400 740 33,600 11,200 8/24 DC Office supplies1,840 2,880 1,240 1.800 2,500 2,500 Stock sale 7/15 Clinic receipts 7/22 Clinic receipts 7130 Clinic receipts 8/1 Borrowing 8/10 Clinic receipts 8/17 Clinic receipts 9/21 Clinic receipts 10/17 Clinic receipts 12/15 Race receipts 2,000 12 102 Legal fees 1,840 7/7 DC Advertising 5,500 718 4,000 7124 DC Advertising 4,000 84 104 Kayaks 103 Bikes 13,600 9/105 Rent 18,300 12/8 106 Race permit 12,000 12/16 107 Salary 12/31 108 Dividend 12/31 109 Dividend $127,440 $66,820 Summary of Transactions Beginning Cash Balance Ending Cash Balance July 1, 2018DepositsChecks December 31, 2018 SO $127,440 $66,820 $60,620 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 Leading You to the Top Member FDIC Account Holder: Great Adventures, Inc. Account Number: 1124537774 Statement Date: Dec. 31, 2018 Account Summary Beginning Balance Deposits and Credits Total Withdraws and Debits Ending Balance July 1, 2018 No No TotalDecember 31, 2018 $0 8 $115,840 $60,320 $55,520 Account Details Deposits and Credits Withdraws and Debits Daily Balance Date Amount Desc. Date No 101 $ 5,280 CHK 7/1 102 Amount Desc. Date Amount $19,720 17,680 5,280 4,540 47,880 14,280 12,440 27,640 24,760 24,910 38,510 56,810 55,570 $ 25,000 DEP 7/1 9,340 DEP 77 34,000 DEP 7/7 5,200 DEP 7/14 1,700 340 12,400 740 33,600 1,840 2,880 150 1,240 150 CHK DC CHK DC CHK DC CHK SF CHK SF 717 7/14 7/24 103 104 105 106 9/30 10/1 7/24 300 INT 13,600 DEP 18,300 DEP 8/9 8/9 8/24 9/1 9/2 9/30 10/1 8/24 12/31 100 INT 9/2 9/30 12/10 12/31 12/10 $115,840 $ 60,320 12/31 $55,520 Desc. SF Service fees DEP Customer deposit CHK Customer check INT Interest earned DC Debit card After comparing the two balances, Suzie has some concern because the bank's balance of $55,520 is substantially less than the company's balance of $60,620 2-a. Prepare Great Adventures' bank reconciliation for the six-month period ended December 31, 2018. (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) GREAT ADVENTURES, INC. Bank Reconciliation December 31, 2018 Bank's Cash Balance Company's Cash Balance Per bank statement Per general ledger Bank balance per reconciliation Company balance per reconciliation 2-b. Record any necessary entries to adjust cash. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Total entries to the same account together when entering in the journal entry carousel.) View transaction list Journal entry worksheet Record the amounts that increase cash. Note: Enter debits before credits Date General Journal DebitCredit Dec. 31,2018 Record entry Clear entry View general journal 2-b. Record any necessary entries to adjust cash. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Total entries to the same account together when entering in the journal entry carousel.) View transaction list Journal entry worksheet Record the amounts that decrease cash Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31, 2018 Record entry Clear entry View general journal

Answer 1

GREAT ADVENTURES, INC
Bank Reconciliation
December 31, 2018
Bank's Cash balance		Company's cash balance
Per bank statement	$ 55,520	Per general ledger	$ 60,620
Add: Deposit in transit	$ 12,000	Add: Interest income ($100+$300)	$        400
Less: Outstanding checks ($1,800+$2,500+$2,500)	$    6,800	Less: Bank service charge ($150+$150)	$        300
Bank balance per reconciliation	$ 60,720	Company balance per reconciliation	$ 60,720

Date	Title	Debit	Credit
Dec-31	Cash	$    400
	Interest income		$     400
	(To record the amounts that increase cash)
Dec-31	Misc. expenses/ Bank service charges	$    300
	Cash		300
	(To record the amounts that decrease cash)

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