BANK RECONCILIATON DEMO PROBLEM Madison Company's cash ledger reports the following for the month ending March 31, No. Date Deposits: chebe 541 541 3/2 Amount $5,100 800 3/8 Date Amount 3/4 $1,200 Checks: 3/11 1,200 3/18 3.700 3/25 3,400 3/26- 3/31 2.100 3/12 2,200 3/19 1,100 Cash receipts 545 3/27 200 $11,600 546 3/28 600 547 3/30 1.300 Balance on March 1 $11,300 Receipts $5,400 11,600 (11,300 Disbursements Balance on March 31 $5.700 Additional information: a. the ending cash balance recorded in the bank statement is $6,790. 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 $400 that did not clear the bank (NSF). e. Check 543 was written for $2,800 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 $1.500 a. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $50. h. Last year, one of Madison's top executives borrowed $4,000 from Madison. On March 24 the executive paid $4,200 ($4,000 borrowed amount plus $200 interest) directly to the bank in payment for the borrowing. The bank charged the following service fees: $30 for NSF check, $10 for automatic withdrawal for rent payment, and $20 for collection of the loan amount from the executive BANK RECONCILIATION WORKSHEET AMOUNTS BANK STATEMENT BALANCE AT: RECONCILING ITEMS DESCRIPTION Cash receipts Outstanding checks ADJUSTED BANK BALANCE 1500 AMOUNTS CASH LEDGER BALANCE AT : RECONCILING ITEMS DESCRIPTION NSF check Office supplies error Rent expense Note and interest Interest income ADJUSTED CASH BALANCE