Madison Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on July 31, 2011, its Cash account shows a $2,025 debit balance. Madison’s July 31 bank statement shows $1,800 on deposit in the bank. Prepare a bank reconciliation for Madison Company using the following information.
a. The July 31 bank statement included a $30 debit memorandum for bank services; Madison has not yet recorded the cost of these services.
b. In reviewing the bank statement, a $90 check written by Madsen Company was mistakenly drawn against Madison’s account.
c. July 31 cash receipts of $210 were placed in the bank’s night depository after banking hours and were not recorded on the July 31 bank statement.
d. Outstanding checks as of July 31 total $100.
e. The bank statement included a $5 credit for interest earned on the cash in the bank.