Madison Company's cash ledger reports the following for the month ending March 31.
Madison Company's cash ledger reports the following for the month ending March 31. Date Amount NO . Date Amount Deposits: 3/4 $ 1,500 Checks: 541 3/2 $ 5,500 3/11 1,300 542 3/8 500 3/18 3,700 543 3/12 2,200 3/25 3,400 544 3/19 1,600 Cash receipts: 3/26' 2,200 545 3/27 700 3/31 $ 12,100 546 3/23 800 547 3/30 1,400 Balance on March 1 $ 5,200 $121700 Receipts 12,100 Disbursements (12 , 700) Balance on March 31 $ 4,600 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 $7,087. b. Cash receipts of $2,200 from 3/263/31 are outstanding. c. Checks 545 and 547 are outstanding. d. The deposit on 3/11 included a customer's check for $450 that did not clear the bank (NSF check). e. Check 543 was written for $2,800 for ofce 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 $1,050. 9. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $59. h. Last year, one of Madison's top executives borrowed $4,400 from Madison. On March 24, the executive paid $4.700 ($4.400 borrowed amount plus $300 interest) directly to the bank in payment for the borrowing. i. The bank charged the following service fees: $33 for NSF check, $15 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.) Before reconciliation - Before reconciliation - After reconciliation 2. Record the necessary cash adjustments.(lf no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the entries that increase cash. Note: Enter debits before credits. Record entry Clear entry View general journal