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. h. i. 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.
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. h. i. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
From the bank reconciliation practice problem on pages 4-5 and 4-6 of the lecture notes, what is the reconciled balance in the cash 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
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
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