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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vinubhai

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.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education