Madison Company's cash ledger reports the following for the month ending March 31. Date Amount No. Date Amount Deposits: 3/4 $ 1,400 Checks: 541 3/2 $ 5,700 3/11 1,700 542 3/8 700 3/18 3,700 543 3/12 3,000 3/25 3,500 544 3/19 1,500 Cash receipts: 3/26-3/31 2,100 545 3/27 700 $ 12,400 546 3/28 800 547 3/30 1,200 Balance on March 1 $ 6,100 $ 13,600 Receipts 12,400 Disbursements (13,600 ) Balance on March 31 $ 4,900 Information from March's bank statement and company records reveal the following additional information: The ending cash balance recorded in the bank statement is $6,970. Cash receipts of $2,100 from 3/26–3/31 are outstanding. Checks 545 and 547 are outstanding. The deposit on 3/11 included a customer's check for $410 that did not clear the bank (NSF check). Check 543 was written for $3,600 for office supplies in March. The bank properly recorded the check for this amount. An automatic withdrawal for March rent was made on March 4 for $1,100. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $54. Last year, one of Madison's top executives borrowed $4,100 from Madison. On March 24, the executive paid $4,400 ($4,100 borrowed amount plus $300 interest) directly to the bank in payment for the borrowing. The bank charged the following service fees: $34 for NSF check, $15 for automatic withdrawal for rent payment, and $25 for collection of the loan amount from the executive. 1. Prepare a bank reconciliation for March 31. (Amounts to be deducted should be indicated with a minus sign.) *picture attached 2. Record the necessary cash adjustments for A & B. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) * A) Record the entries that increase cash & B) Record the entries that decrease cash. *picture attached to use as a guide for A&

Madison Company's cash ledger reports the following for the month ending March 31. Date Amount No. Date Amount Deposits: 3/4 $ 1,400 Checks: 541 3/2 $ 5,700 3/11 1,700 542 3/8 700 3/18 3,700 543 3/12 3,000 3/25 3,500 544 3/19 1,500 Cash receipts: 3/26-3/31 2,100 545 3/27 700 $ 12,400 546 3/28 800 547 3/30 1,200 Balance on March 1 $ 6,100 $ 13,600 Receipts 12,400 Disbursements (13,600 ) Balance on March 31 $ 4,900 Information from March's bank statement and company records reveal the following additional information: The ending cash balance recorded in the bank statement is $6,970. Cash receipts of $2,100 from 3/26–3/31 are outstanding. Checks 545 and 547 are outstanding. The deposit on 3/11 included a customer's check for $410 that did not clear the bank (NSF check). Check 543 was written for $3,600 for office supplies in March. The bank properly recorded the check for this amount. An automatic withdrawal for March rent was made on March 4 for $1,100. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $54. Last year, one of Madison's top executives borrowed $4,100 from Madison. On March 24, the executive paid $4,400 ($4,100 borrowed amount plus $300 interest) directly to the bank in payment for the borrowing. The bank charged the following service fees: $34 for NSF check, $15 for automatic withdrawal for rent payment, and $25 for collection of the loan amount from the executive. 1. Prepare a bank reconciliation for March 31. (Amounts to be deducted should be indicated with a minus sign.) picture attached 2. Record the necessary cash adjustments for A & B. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) A) Record the entries that increase cash & B) Record the entries that decrease cash. *picture attached to use as a guide for A&

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter7: Internal Control And Cash

Section: Chapter Questions

Problem 22E

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Question

Madison Company's cash ledger reports the following for the month ending March 31.

	Date		Amount		No.	Date		Amount
Deposits:	3/4	$	1,400	Checks:	541	3/2	$	5,700
	3/11		1,700		542	3/8		700
	3/18		3,700		543	3/12		3,000
	3/25		3,500		544	3/19		1,500
Cash receipts:	3/26-3/31		2,100		545	3/27		700
		$	12,400		546	3/28		800
				547	3/30		1,200
Balance on March 1	$	6,100				$	13,600
Receipts		12,400
Disbursements		(13,600	)
Balance on March 31	$	4,900

Information from March's bank statement and company records reveal the following additional information:

The ending cash balance recorded in the bank statement is $6,970.
Cash receipts of $2,100 from 3/26–3/31 are outstanding.
Checks 545 and 547 are outstanding.
The deposit on 3/11 included a customer's check for $410 that did not clear the bank (NSF check).
Check 543 was written for $3,600 for office supplies in March. The bank properly recorded the check for this amount.
An automatic withdrawal for March rent was made on March 4 for $1,100.
Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $54.
Last year, one of Madison's top executives borrowed $4,100 from Madison. On March 24, the executive paid $4,400 ($4,100 borrowed amount plus $300 interest) directly to the bank in payment for the borrowing.
The bank charged the following service fees: $34 for NSF check, $15 for automatic withdrawal for rent payment, and $25 for collection of the loan amount from the executive.

1. Prepare a bank reconciliation for March 31. (Amounts to be deducted should be indicated with a minus sign.) *picture attached

2. Record the necessary cash adjustments for A & B. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) * A) Record the entries that increase cash & B) Record the entries that decrease cash. *picture attached to use as a guide for A&B.

1. Prepare a bank reconciliation for March 31. (Amounts to be deducted should be Indicated with a minus sign.)
MADISON COMPANY
Bank Reconciliation
March 31
Bank's Cash Balance
Company's Cash Balance
Before reconciliation
Before reconciliation
After reconciliation
O After reconciliation

2. Record the necessary cash adjustments.(If no entry Is required for a transactlon/event, select "No Journal Entry Required" In the
first account fleld.)
View transaction list
Journal entry worksheet
A
>
Record the entries that increase cash.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
View general jourmal
B.

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