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


GREAT ADVENTURES
Cash Account Records
July 1, 2024, to December 31, 2024
Cash Receipts Cash Disbursements
Date Description Amount Date Check number Description Amount
7/1 Stock sale $20,000 7/1 101 Insurance $4,800
7/15 Clinic receipts 2,000 7/2 102 Legal fees 1,500
7/22 Clinic receipts 2,300 7/7 DC Advertising 300
7/30 Clinic receipts 4,000 7/8 103 Bikes 12,000
8/1 Borrowing 30,000 7/24 DC Advertising 700
8/10 Clinic receipts 3,000 8/4 104 Kayaks 28,000
8/17 Clinic receipts 10,500 8/24 DC Office supplies 1,800
9/21 Clinic receipts 13,200 9/1 105 Rent 2,400
10/17 Clinic receipts 17,900 12/8 106 Race permit 1,200
12/15 Race receipts 20,000 12/16 107 Salary 2,000
12/31 108 Dividend 2,000
12/31 109 Dividend 2,000
$122,900 $58,700


Summary of Transactions
Beginning Cash Balance July 1, 2024 + Cash Receipts − Cash Disbursements = Ending Cash Balance December 31, 2024
$0 $122,900 $58,700 $64,200


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, Incorporated Account Number: 1124537774
Statement Date: December 31, 2024
Account Summary
Beginning Balance
July 1, 2024 Deposits and Credits Withdrawals and Debits Ending Balance December 31, 2024
Number Total Number Total
$6,260 8 $103,400 11 $52,900 $50,500
Account Details
Deposits and Credits Withdrawals and Debits Daily Balance
Date Amount Description Date Number Amount Description Date Amount
7/1 $20,000 DEP 7/1 101 $4,800 CHK 7/1 $15,200
8/1 8,300 DEP 7/7 102 1,500 CHK 7/7 13,400
8/1 30,000 DEP 7/7 300 DC 7/14 1,400
9/1 13,500 DEP 7/14 103 12,000 CHK 7/24 700
9/30 200 INT 7/24 700 DC 8/1 39,000
10/1 13,200 DEP 8/9 104 28,000 CHK 8/9 11,000
11/1 17,900 DEP 8/24 1,800 DC 8/24 9,200
12/31 300 INT 9/2 105 2,400 CHK 9/1 22,700
9/30 100 SF 9/2 20,300
12/10 106 1,200 CHK 9/30 20,400
12/31 100 SF 10/1 33,600
11/1 51,500
12/10 50,300
$103,400 $52,900 12/31 $50,500


Description 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 $50,500 is substantially less than the company’s balance of $64,200.


Required:

2-a. Prepare Great Adventures’ bank reconciliation for the six-month period ended December 31, 2024.
2-b. Record any necessary entries to adjust cash.