Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Madison Company's cash ledger reports the following for the month ending March 31.

image text in transcribedimage text in transcribedimage text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial & Managerial Accounting

Authors: Jan Williams, Sue Haka, Mark Bettner, Joseph Carcello

15th Edition

0073526991, 9780073526997

More Books

Students also viewed these Accounting questions