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An examination of the cash activities during the year shows the following.

GREAT ADVENTURES
Cash Account Records
July 1, 2015, to December 31, 2015
Deposits Checks/Debit Cards
  Date   Desc. Amount   Date No.   Desc. Amount
  7/1   Stock sale $ 25,000       7/1 101   Insurance $ 4,920   
  7/15   Clinic receipts
2,000       7/2 102   Legal fees
1,550   
  7/22   Clinic receipts
1,840       7/7 DC   Advertising
310   
  7/30   Clinic receipts
5,500       7/8 103   Bikes
12,100   
  8/1   Borrowing
31,000       7/24 DC   Advertising
710   
  8/10   Clinic receipts
4,000       8/4 104   Kayaks
29,400   
  8/17   Clinic receipts
11,200       8/24 DC   Office supplies
1,810   
  9/21   Clinic receipts
13,300       9/1 105   Rent
2,520   
  10/17   Clinic receipts
18,000       12/8 106   Race permit
1,210   
  12/15   Race receipts
12,000       12/16 107   Salary
1,800   




  12/31 108   Dividend
2,500   




  12/31 109   Dividend
2,500   
  









$ 123,840    

   $ 61,330   
  








Summary of Transactions
Beginning
Cash Balance
July 1, 2015		 + Deposits ? Checks = Ending
Cash Balance
December 31, 2015
$0
$123,840
$61,330
$62,510

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:
    Statement Date:		 1124537774
Dec. 31, 2015

Account Summary

Beginning Balance

Deposits and Credits

Withdraws and Debits

 Ending Balance
July 1, 2015           No             Total
No         Total December 31, 2015





$0    8 $112,240
11 $54,830 $57,410

Account Details

Deposits and Credits Withdraws and Debits Daily Balance



  Date Amount Desc.   Date No. Amount Desc.   Date Amount
  7/1 $ 25,000         DEP   7/1 101 $ 4,920          CHK   7/1 $ 20,080   
  8/1
9,340         DEP   7/7 102
1,550          CHK   7/7
18,220   
  8/1
31,000         DEP   7/7

310          DC   7/14
6,120   
  9/1
15,200         DEP   7/14 103
12,100          CHK   7/24
5,410   
  9/30
300         INT   7/24

710          DC   8/1
45,750   
  10/1
13,300         DEP   8/9 104
29,400          CHK   8/9
16,350   
  11/1
18,000         DEP   8/24

1,810          DC   8/24
14,540   
  12/31
100         INT   9/2 105
2,520          CHK   9/1
29,740   




  9/30

150          SF   9/2
27,220   




  12/10 106
1,210          CHK   9/30
27,370   




  12/31

150          SF   10/1
40,670   
  







  11/1
58,670   
  







  12/10
57,460   
  











$ 112,240     


$ 54,830     
  12/31 $ 57,410   
  











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 $57,410 is substantially less than the company's balance of $62,510.

Prepare Great Adventures' bank reconciliation for the six-month period ended December 31, 2015.

Record any necessary entries to adjust cash.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9956619

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