SOLUTION: University of Memphis Bank Reconciliation Worksheet

Date
Amount
7/1
7/15
7/22
7/30
8/1
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 7/7
DC Advertising
Clinic receipts 5,500 7/8
103 Bikes
Borrowing
27,000 7/24
DC Advertising
Clinic receipts 4,000 8/4
104 Kayats
Clinic receipts
11,200 8/24
DC Office supplies
Clinic receipts
12,900 9/1
105 Rent
Clinic receipts
17,600 12/8 106 Race permit
Race receipts 12,000 12/16
Salary
12/31 108 Dividend
12/31 109 Dividend
$119,040
1,350
270
11,700
670
23,800
1,770
2,040
1,170
1,800
2,500
2,500
$54,010
Summary of Transactions
Beginning
Cash Balance
Ending
Cash Balance
July 1, 2021
s 0
Cash Receipts
$119,040
Cash
Disbursements
$54,010
= December 31, 2021
$ 65,030
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.
Member FDIC
1124537774
Dec. 31, 2021
Ending Balance
December 31, 2021
$59,930
SUMMIT BANK
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Account Holder: Great Adventures, Inc.
Account Number:
Statement Date:
Account Summary
Withdrawals and
Beginning Balance Deposits and Credits
Debits
July 1, 2021
No
Total
No
Total
SO
$107,440 11
$ 47,510
Account Details
Deposits and Credits
Withdrawals and Debits
Date
Amount Desc. Date No. Amount
Desc.
7/1 $ 25,000 DEP
7/1
101 $ 4,440
CHE
8/1
9,340 DEP
7/7
102
1,350
CHE
8/1
27,000 DEP
7/7
270
DC
9/1
15,200 DEP 7/14
103
11,700
CHE
9/30
300 INT
7/24
670
DC
10/1
12,900 DER
B/S
104 23,800
CHE
11/1
17,600 DEP 8/24
1,770
DC
12/31
100 INT
9/2
105
2,040
CHE
9/30
150
SE
12/10 106
1,170
CHE
12/31
150
SE
Daily Balance
Date
Amount
7/1 $20,560
7/7
18,940
7/14
7,240
6,570
8/1
42,910
8/9
19, 110
8/24
17,340
32,540
9/2
30,500
9/30
30, 650
10/1
43,550
11/1
61,150
12/10 59,980
12/31 $59,930
9/1
$107,440
$ 47,510
Desc. DEP Customer deposit
CHK Customer check
INT Interest earned
DC Debit card
SE Service fees
After comparing the two balances, Suzie has some concern because the bank’s balance of $59.930 is substantially less than the
company’s balance of $65,030.
Required Information
(The following information applies to the questions displayed below.)
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to
purchase a used Suburban on July 1, 2022, for $14,000. They expect to use the Suburban for five years and then sell the
vehicle for $5,500. The following expenditures related to the vehicle were also made on July 1, 2022:
The company pays $2,300 to GEICO for a one-year insurance policy.
• The company spends an extra $5,000 to repaint the vehicle. placing the Great Adventures logo on the front hood,
back, and both sides.
• An additional $2.500 is spent on a deluxe roof rack and a trailer hitch.
The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In
addition, on October 22, 2022, the company pays $1,400 for basic vehicle
maintenance related to changing the oil.
replacing the windshield wipers, rotating the tires, and inserting a new air filter.
equired:
Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle is recorded in the
quipment account. (If no entry is required for a transaction/event, select “No Journal Entry Required” In the first account fleld.)
View transaction list
Journal entry
worksheet
<
1
Record the expenditures related to the new vehicle.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Jul 01, 2022
Record entry
Clear entry
View general journal
Required Information
[The following information applies to the questions displayed below.)
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to
purchase a used Suburban on July 1, 2022. for $14.000. They expect to use the Suburban for five years and then sell the
vehicle for $5,500. The following expenditures related to the vehicle were also made on July 1, 2022:
The company pays $2,300 to GEICO for a one-year insurance policy.
• The company spends an extra $5,000 to repaint the vehicle. placing the Great Adventures logo on the front hood,
back, and both sides.
• An additional $2,500 is spent on a deluxe roof rack and a trailer hitch.
The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In
addition, on October 22, 2022, the company pays $1.400 for basic vehicle maintenance related to changing the oil.
replacing the windshield wipers, rotating the tires, and inserting a new air filter.
4. Record the depreciation expense and any other adjustments related to the vehicle on December 31, 2022. (If no entry Is required
for a transaction/event, select “No Journal Entry Required” In the first account fleld.)
View transaction list
Journal entry
worksheet
1
2
>
Record the depreciation expense for the vehicle.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Dec 31.
2022
Record entry
Clear entry
View general journal
2-0. Prepare Great Adventures’ bank reconciliation for the six-month period ended December 31, 2021. (Amounts to be deducted
should be Indicated with a minus sign. Total entries to the same account together when entering in the bank reconcillation.)
Bank’s Cash Balance
Per Bank Statement
Deposits Outstanding
Cheds Outstanding
GREAT ADVENTURES, INC.
Bank Reconciliation
December 31, 2021
Company’s Cash Balance
Per General Ledger
Interest Earned
Service Fee
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 fleld. Total entries to the same account together when entering in the journal entry carousel.)
View transaction list
Journal entry
worksheet
<
1
2
Record the amounts that increase cash.
Note: Enter debits before credits.
General Journal
Debit
Credit
Date
Dec 31.
2021
Cash
Interest Revenue
Record entry
Clear entry
View general journal

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