a) Prepare Bank Reconcilation for March 31

b) Record the necessary cash adjustments ( Cash increase, Cash decrease)

Madison Company's cash ledger reports the following for the month ending March 31 Date 3/4 No. Date Amount 3/2 3/8 3/12 3/19 3/27 Deposits $ 1,600 Checks: 541 S 5,700 1,400 3,700 3,200 326-331 2,100 542 543 544 545 3/18 3/25 2,600 1,300 Cash receipts: 546 3/28 5473/30 600 2,000 S 12,000 Balance on March 1 $13,400 S 5,400 12,000 (13,400) Receipts Balance on March 31 S 4,000 Information from March's bank statement and company records reveals the following additional information: a. The ending cash balance recorded in the bank statement is $7,037 b. Cash receipts of $2,100 from 3/26-3/31 are outstanding. c. Checks 545 and 547 are outstanding. d. The deposit on 3/11 included a customer's check for $500 that did not clear the bank (NSF check). e. Check 543 was written for $3,200 for office supplies in March. The bank properly recorded the check for this amount. f. An automatic withdrawal for March rent was made on March 4 for $1,000 g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $55 h. Last year, one of Madison's top executives borrowed $4,400 from Madison. On March 24, the executive paid $4,650 ($4,400 borrowed amount plus $250 interest) directly to the bank in payment for the borrowing. i. The bank charged the following service fees: $31 for NSF check, $13 for automatic withdrawal for rent payment, and $24 for collection of the loan amount from the executive. Madison Company's cash ledger reports the following for the month ending March 31 Date 3/4 No. Date Amount 3/2 3/8 3/12 3/19 3/27 Deposits $ 1,600 Checks: 541 S 5,700 1,400 3,700 3,200 326-331 2,100 542 543 544 545 3/18 3/25 2,600 1,300 Cash receipts: 546 3/28 5473/30 600 2,000 S 12,000 Balance on March 1 $13,400 S 5,400 12,000 (13,400) Receipts Balance on March 31 S 4,000 Information from March's bank statement and company records reveals the following additional information: a. The ending cash balance recorded in the bank statement is $7,037 b. Cash receipts of $2,100 from 3/26-3/31 are outstanding. c. Checks 545 and 547 are outstanding. d. The deposit on 3/11 included a customer's check for $500 that did not clear the bank (NSF check). e. Check 543 was written for $3,200 for office supplies in March. The bank properly recorded the check for this amount. f. An automatic withdrawal for March rent was made on March 4 for $1,000 g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $55 h. Last year, one of Madison's top executives borrowed $4,400 from Madison. On March 24, the executive paid $4,650 ($4,400 borrowed amount plus $250 interest) directly to the bank in payment for the borrowing. i. The bank charged the following service fees: $31 for NSF check, $13 for automatic withdrawal for rent payment, and $24 for collection of the loan amount from the executive