Question

An examination of the cash activities during the year shows the following mount 7/15 7/22 773 B/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 $ 25,000 7/1 101 Insurance Clinic receipts 2,000 7/2 102 Legal fees Clinic receipts 1.840 777 Advertising Clinic receipts 5,500 7/8 Bikes Borrowing 34,000 7/24 Advertising Clinic receipts 4,000 8/4 104 Kayaks Clinic receipts 11, 2008/24 DC Office supplies Clinic receipts 13,600 9/1 Rent Clinic receipts 18,300 12/8 106 Race permit Race receipts 12,000 12/16 107 Salary 12/31 Dividend 12/31 109 Dividend $127,440 $ 5,280 1,700 340 12,400 740 33, 600 1,840 2,880 108 1,240 1,800 2,500 2,500 $66,820 Sumary of Transactions Beginning Cash Balance Ending Cash Balance July 1, 2021 $ Cash Receipts $127,440 Cash Disbursements $66,820 December 31, 2021 $69.629 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

2a
Bank Reconciliation
December 31,2021
Bank's Cash balance		Company's Cash balance
Per bank statement	55520	Per general ledger	60620
Deposits outstanding	12000	Interest earned	400
Checks outstanding	-6800	Service Fees	-300
Bank balance per reconciliation	60720	Company balance per reconciliation	60720

2b
General Journal	Debit	Credit
Cash	400		=300+100
Interest revenue		400
General Journal	Debit	Credit
Service fees expense	300		=150+150
Cash		300