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Madison Company's cash ledger reports the following for the month ending March 31. Deposits: Cash receipts: Balance on March 1 Receipts Disbursements Balance on March 31 Date 3/4 3/11 3/18 3/25 3/26 to 3/31 Amount $5,500 13,500 (12,300) $6,700 Amount $1,400 1,800 3,900 4,000 2,400 $13,500 Checks: Number 541 542 543 544 545 546 547 Date 3/2 3/8 3/12 3/19 3/27 3/28 3/30 Amount $5,500 400 2,300 1,700 200 800 1,400 $12,300 Information from March's bank statement and company records reveals the following additional information: a. The endin cash balance recorded in the bank statement is $8,075. b. Cash receipts of $2.400 from 3/26 - 3/31 are outstanding. c. Checks 545 and 547 are outstanding. Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on March 31. 2. Record the necessary entry(ies) to adjust Madison Company's balance for cash. d. The deposit on 3/11 included an NSF check from a customer in the amount of $440 that did not clear the bank. e. Check 543 was written for $2,900 for office supplies in March. The bank properly recorded the check for this amount. f. An electronic funds transfer (EFT) for March rent was made on March 4 for $1,200. g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $57. h. Last year, one of Madison's top executives borrowed $4,200 from Madison. On March 24, the executive paid $4.430 ($4,200 borrowed amount plus $230 interest) directly to the bank in payment for the borrowing. 1. The bank charged the following service fees: $31 for NSF check, $19 for an electronic funds transfer (EFT) for rent payment, and $22 for collection of the loan amount from the executive.

Madison Company's cash ledger reports the following for the month ending March 31. Deposits: Cash receipts: Balance on March 1 Receipts Disbursements Balance on March 31 Date 3/4 3/11 3/18 3/25 3/26 to 3/31 Amount $5,500 13,500 (12,300) $6,700 Amount $1,400 1,800 3,900 4,000 2,400 $13,500 Checks: Number 541 542 543 544 545 546 547 Date 3/2 3/8 3/12 3/19 3/27 3/28 3/30 Amount $5,500 400 2,300 1,700 200 800 1,400 $12,300 Information from March's bank statement and company records reveals the following additional information: a. The endin cash balance recorded in the bank statement is $8,075. b. Cash receipts of $2.400 from 3/26 - 3/31 are outstanding. c. Checks 545 and 547 are outstanding. Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on March 31. 2. Record the necessary entry(ies) to adjust Madison Company's balance for cash. d. The deposit on 3/11 included an NSF check from a customer in the amount of $440 that did not clear the bank. e. Check 543 was written for $2,900 for office supplies in March. The bank properly recorded the check for this amount. f. An electronic funds transfer (EFT) for March rent was made on March 4 for $1,200. g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $57. h. Last year, one of Madison's top executives borrowed $4,200 from Madison. On March 24, the executive paid $4.430 ($4,200 borrowed amount plus $230 interest) directly to the bank in payment for the borrowing. 1. The bank charged the following service fees: $31 for NSF check, $19 for an electronic funds transfer (EFT) for rent payment, and $22 for collection of the loan amount from the executive.

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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Madison Company's cash ledger reports the following for the month ending March 31. Deposits: Cash receipts: Balance on March 1 Receipts Disbursements Balance on March 31 Date 3/4 3/11 3/18 3/25 3/26 to 3/31 Amount $5,500 13,500 (12,300) $6,700 Amount $1,400 1,800 3,900 4,000 2,400 $13,500 Checks: Number 541 542 543 544 545 546 547 Date 3/2 3/8 3/12 3/19 3/27 3/28 3/30 Amount Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on March 31. 2. Record the necessary entry(ies) to adjust Madison Company's balance for cash. $5,500 400 2,300 1,700 200 800 1,400 $12,300 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 $8,075. b. Cash receipts of $2.400 from 3/26 - 3/31 are outstanding. c. Checks 545 and 547 are outstanding. d. The deposit on 3/11 included an NSF check from a customer in the amount of $440 that did not clear the bank. e. Check 543 was written for $2,900 for office supplies in March. The bank properly recorded the check for this amount. f. An electronic funds transfer (EFT) for March rent was made on March 4 for $1,200. g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $57. h. Last year, one of Madison's top executives borrowed $4,200 from Madison. On March 24, the executive paid $4,430 ($4,200 borrowed amount plus $230 interest) directly to the bank in payment for the borrowing. i. The bank charged the following service fees: $31 for NSF check, $19 for an electronic funds transfer (EFT) for rent payment, and $22 for collection of the loan amount from the executive.
Transcribed Image Text:Madison Company's cash ledger reports the following for the month ending March 31. Deposits: Cash receipts: Balance on March 1 Receipts Disbursements Balance on March 31 Date 3/4 3/11 3/18 3/25 3/26 to 3/31 Amount $5,500 13,500 (12,300) $6,700 Amount $1,400 1,800 3,900 4,000 2,400 $13,500 Checks: Number 541 542 543 544 545 546 547 Date 3/2 3/8 3/12 3/19 3/27 3/28 3/30 Amount Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on March 31. 2. Record the necessary entry(ies) to adjust Madison Company's balance for cash. $5,500 400 2,300 1,700 200 800 1,400 $12,300 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 $8,075. b. Cash receipts of $2.400 from 3/26 - 3/31 are outstanding. c. Checks 545 and 547 are outstanding. d. The deposit on 3/11 included an NSF check from a customer in the amount of $440 that did not clear the bank. e. Check 543 was written for $2,900 for office supplies in March. The bank properly recorded the check for this amount. f. An electronic funds transfer (EFT) for March rent was made on March 4 for $1,200. g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $57. h. Last year, one of Madison's top executives borrowed $4,200 from Madison. On March 24, the executive paid $4,430 ($4,200 borrowed amount plus $230 interest) directly to the bank in payment for the borrowing. i. The bank charged the following service fees: $31 for NSF check, $19 for an electronic funds transfer (EFT) for rent payment, and $22 for collection of the loan amount from the executive.
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