After comparing the two balances suzie has some concern

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Reference no: EM13579042

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.

Reference no: EM13579042

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