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Madison Company's cash ledger reports the following for the month ending March 31, 20XX. Deposits 3/11 3/18 3/25 Cash receipts 3/26-3/31 Balance on March 1
Madison Company's cash ledger reports the following for the month ending March 31, 20XX. Deposits 3/11 3/18 3/25 Cash receipts 3/26-3/31 Balance on March 1 Disbursements Balance on March 31 Amount $1,200 3,700 3,400 2,100 $11.600 $5,400 (11,300) Check No. 543 3/2 3/8 3/12 3/19 3/27 a. The ending cash balance recorded in the bank statement is $6,790. b. Cash receipts of $2,100 from 3/26-3/31 are outstanding. c. Checks 545 and 547 are outstanding. 3/30 $5,100 2,200 200 600 1,300 Information from March's bank statement and company records reveals the following additional information: d. The deposit on 3/11 includes a customer's check for $400 that did not clear the bank (NSF check). Check 543 was written for $2,800 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 $1,500. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $1. h. Last year, one of Madison's top executives borrowed $4,000 from Madison. On March 24, the executive paid $4,217 (54,000 borrowed amount plus $217 interest) directly to the bank in payment for the borrowing. The bank charged the following service fees: $25 for NSF check, $1 for automatic withdrawal for rent payment, and $2 for collection of the loan amount from the executive. Prepare the bank reconciliation for March 31, 20XX; record the necessary cash adjustments.
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