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Madison Company's cash ledger reports the following for the month ending March 31. Deposits: Date 3/4 Amount $1,200 Number Date Amount Checks: 541 3/2
Madison Company's cash ledger reports the following for the month ending March 31. Deposits: Date 3/4 Amount $1,200 Number Date Amount Checks: 541 3/2 $5,400 3/11 1,800 542 3/8 600 3/18 3,600 543 3/12 2,400 3/25 3,100 544 3/19 2,000 Cash receipts: 3/26 to 3/31 2,300 545 3/27 400 $12,000 546 3/28 400 547 3/30 1,900 $13,100 Balance on March 1 Receipts Disbursements Balance on March 31 Amount $5,200 12,000 (13,100) $4,100 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 $6,526. b. Cash receipts of $2,300 from 3/26 - 3/31 are outstanding. c. Checks 545 and 547 are outstanding. d. The deposit on 3/11 included an NSF check from a customer in the amount of $480 that did not clear the bank. e. Check 543 was written for $3,000 for office supplies in March. The bank properly recorded the check for this amount. f. An electronic funds transfer (EFT) for March rent was made on March 4 for $1,050. g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $54. h. Last year, one of Madison's top executives borrowed $4,300 from Madison. On March 24, the executive paid $4,580 ($4,300 i. The bank charged the following service fees: $35 for NSF check, $14 for an electronic funds transfer (EFT) for rent payment, and $29 for collection of the loan amount from the executive. Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on March 31. 2. Record the necessary entry(ies) to adjust Madison Company's balance for cash.
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