Question
Madison Company's cash ledger reports the following for the month ending March 31. Date Amount No. Date Amount Deposits: 3/4 $ 1,200 Checks: 541 3/2
Madison Company's cash ledger reports the following for the month ending March 31.
Date | Amount | No. | Date | Amount | ||
Deposits: | 3/4 | $ 1,200 | Checks: | 541 | 3/2 | $5,600 |
3/11 | 1,600 | 542 | 3/8 | 800 | ||
3/18 | 4,300 | 543 | 3/12 | 2,900 | ||
3/25 | 3,100 | 544 | 3/19 | 1,800 | ||
Cash receipts: | 3/26-3/31 | 2,300 | 545 | 3/27 | 500 | |
546 | 3/28 | 800 | ||||
$ 12,500 | 547 | 3/30 | 1,400 | |||
Balance on March 1 | $ 5,800 | $13,800 | ||||
Receipts | 12,500 | |||||
Disbursements | (13,800) | |||||
Balance on March 31 | $ 4,500 | |||||
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 $6,462. 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 a customer's check for $430 that did not clear the bank (NSF check). e. Check 543 was written for $3,500 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 $1,250. g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $53. h. Last year, one of Madison's top executives borrowed $4,400 from Madison. On March 24, the executive paid $4,660 ($4,400 borrowed amount plus $260 interest) directly to the bank in payment for the borrowing. i. The bank charged the following service fees: $37 for NSF check, $10 for automatic withdrawal for rent payment, and $24 for collection of the loan amount from the executive.
1.Prepare a bank reconciliation for March 31.(Amounts to be deducted should be indicated with a minus sign.)
2..Record the necessary cash adjustments.
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