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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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