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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?

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
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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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 Company Bank Reconciliation March 31, 20XX Bank Statement Balance Company's Cash Account Balance Before reconciliation $ Before reconciliation $ Deposits outstanding NSF check Checks outstanding Company error EFT for rent Interest on account Note w/interest collected Service charge After reconciliation After reconciliation A/R (A+) Supplies (A+) Rent (E+àSE-) Bank Service fees (E+àSE-) Cash (A-) Cash (A+) Note Receivable (A-) Interest Revenue (R+àSE+) CASH 5,700
Transcribed Image Text:Madison Company Bank Reconciliation March 31, 20XX Bank Statement Balance Company's Cash Account Balance Before reconciliation $ Before reconciliation $ Deposits outstanding NSF check Checks outstanding Company error EFT for rent Interest on account Note w/interest collected Service charge After reconciliation After reconciliation A/R (A+) Supplies (A+) Rent (E+àSE-) Bank Service fees (E+àSE-) Cash (A-) Cash (A+) Note Receivable (A-) Interest Revenue (R+àSE+) CASH 5,700
Practice Madison Company's cash ledger reports the following for the month ending March 31, 20XX. Deposits Date Amount Check No. Date Amount 3/4 $1,200 541 3/2 $5,100 3/11 1,200 542 3/8 800 3,700 3,400 3/18 543 3/12 2,200 3/25 544 3/19 1,100 Cash receipts 3/26 – 3/31 2,100 545 3/27 200 $11,600 546 3/28 600 547 3/30 1,300 Balance on March 1 $5,400 11,300 Receipts 11,600 Disbursements (11,300) Balance on March 31 $5,700 Information from March's bank statement and company records reveals 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 $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. е. f. An automatic withdrawal for March rent was made on March 4 for $1,500. Madison's checking account earns interest based on the g. average daily balance. The amount of interest earned for March is $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 the bank in payment for the borrowing. i. h. 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. Madison Company Bank Reconciliation March 31, 20XX Bank Statement Balance Company's Cash Account Balance Before reconciliation $ Before reconciliation Deposits outstanding Checks outstanding NSF check Company error EFT for rent Interest on account
Transcribed Image Text:Practice Madison Company's cash ledger reports the following for the month ending March 31, 20XX. Deposits Date Amount Check No. Date Amount 3/4 $1,200 541 3/2 $5,100 3/11 1,200 542 3/8 800 3,700 3,400 3/18 543 3/12 2,200 3/25 544 3/19 1,100 Cash receipts 3/26 – 3/31 2,100 545 3/27 200 $11,600 546 3/28 600 547 3/30 1,300 Balance on March 1 $5,400 11,300 Receipts 11,600 Disbursements (11,300) Balance on March 31 $5,700 Information from March's bank statement and company records reveals 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 $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. е. f. An automatic withdrawal for March rent was made on March 4 for $1,500. Madison's checking account earns interest based on the g. average daily balance. The amount of interest earned for March is $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 the bank in payment for the borrowing. i. h. 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. Madison Company Bank Reconciliation March 31, 20XX Bank Statement Balance Company's Cash Account Balance Before reconciliation $ Before reconciliation Deposits outstanding Checks outstanding NSF check Company error EFT for rent Interest on account
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