From the bank reconciliation practice problem on pages 4-5 and 4-6 of the lecture notes, what is the amount of the error in event “e” related to check 543? Madison CompanyBank ReconciliationMarch 31, 20XXBank Statement Balance Company's Cash Account BalanceBefore reconciliation $ Before reconciliation$Deposits outstandingNSF checkChecks outstandingCompany errorEFT for rentInterest on accountNote w/interest collectedService chargeAfter reconciliationAfter reconciliationA/R (A+)Supplies (A+)Rent (E+àSE-)Bank Service fees (E+àSE-)Cash (A-)Cash (A+)Note Receivable (A-)Interest Revenue (R+àSE+)CASH5,700 PracticeMadison Company's cash ledger reports the following for themonth ending March 31, 20XX.DepositsDateAmount Check No. Date Amount3/4$1,2005413/2 $5,1003/111,2005423/88003,7003,4003/185433/12 2,2003/255443/19 1,100Cash receipts 3/26 – 3/312,1005453/27200$11,6005463/286005473/30 1,300Balance on March 1$5,40011,300Receipts11,600Disbursements(11,300)Balance on March 31$5,700Information from March's bank statement and company recordsreveals the following additional information:The ending cash balance recorded in the bank statement is$6,790.а.b.Cash receipts of $2,100 from 3/26–3/31 are outstanding.с.Checks 545 and 547 are outstanding.d.The deposit on 3/11 includes a customer's check for $400that did not clear the bank (NSF check).Check 543 was written for $2,800 for office supplies inMarch. The bank properly recorded the check for this amount.е.f.An automatic withdrawal for March rent was made onMarch 4 for $1,500.Madison's checking account earns interest based on theg.average daily balance. The amount of interest earned for Marchis $1.Last year, one of Madison's top executives borrowed$4,000 from Madison. On March 24, the executive paid $4,217($4,000 borrowed amount plus $217 interest) directly to thebank in payment for the borrowing.i.h.The bank charged the following service fees: $25 for NSFcheck, $1 for automatic withdrawal for rent payment, and $2 forcollection of the loan amount from the executive.Prepare the bank reconciliation for March 31, 20XX; record thenecessary cash adjustments.Madison CompanyBank ReconciliationMarch 31, 20XXBank Statement Balance Company's Cash Account BalanceBefore reconciliation $ Before reconciliationDeposits outstandingChecks outstandingNSF checkCompany errorEFT for rentInterest on account

Answered: From the bank reconciliation practice…

From the bank reconciliation practice problem on pages 4-5 and 4-6 of the lecture notes, what is the amount of the error in event “e” related to check 543?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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