Madison Company's cash ledger reports the following for the month ending March 31, 2012. 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 $6,790.
b. Cash receipts of $2,100 from 3/26-3/31 are outstanding.
c. Checks 545 and 547 are outstanding.
d. The deposit on 3/11 included a customer's check for $400 that did not clear the bank (NSF
check).
e. Check 543 was written for $2,800 for office supplies in March. The bank properly recorded the check for this amount.
f. An automatic withdrawal for March rent was made on March 4 for $1,500.
g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $50.
h. Last year, one of Madison's top executives borrowed $4,000 from Madison. On March 24, the executive paid $4,200 ($4,000 borrowed amount plus $200 interest) directly to the bank in payment for the borrowing.
i. The bank charged the following service fees: $30 for NSF check, $10 for automatic withdrawal for rent payment, and $20 for collection of the loan amount from the executive.
Prepare a bank reconciliation for March 31, 2012, and record the necessary cash adjustments.

Question

Madison Company's cash ledger reports the following for the month ending March 31, 2012.  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 $6,790.
b. Cash receipts of $2,100 from 3/26-3/31 are outstanding.
c. Checks 545 and 547 are outstanding.
d. The deposit on 3/11 included a customer's check for $400 that did not clear the bank (NSF
check).
e. Check 543 was written for $2,800 for office supplies in March. The bank properly recorded the check for this amount.
f. An automatic withdrawal for March rent was made on March 4 for $1,500.
g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $50.
h. Last year, one of Madison's top executives borrowed $4,000 from Madison. On March 24, the executive paid $4,200 ($4,000 borrowed amount plus $200 interest) directly to the bank in payment for the borrowing.
i. The bank charged the following service fees: $30 for NSF check, $10 for automatic withdrawal for rent payment, and $20 for collection of the loan amount from the executive.
Prepare a bank reconciliation for March 31, 2012, and record the necessary cash adjustments.

Quizplus · Accepted Answer

The Answer of Madison Company's cash ledger reports the following for the month ending March 31, 2012.  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 $6,790.
b. Cash receipts of $2,100 from 3/26-3/31 are outstanding.
c. Checks 545 and 547 are outstanding.
d. The deposit on 3/11 included a customer's check for $400 that did not clear the bank (NSF
check).
e. Check 543 was written for $2,800 for office supplies in March. The bank properly recorded the check for this amount.
f. An automatic withdrawal for March rent was made on March 4 for $1,500.
g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $50.
h. Last year, one of Madison's top executives borrowed $4,000 from Madison. On March 24, the executive paid $4,200 ($4,000 borrowed amount plus $200 interest) directly to the bank in payment for the borrowing.
i. The bank charged the following service fees: $30 for NSF check, $10 for automatic withdrawal for rent payment, and $20 for collection of the loan amount from the executive.
Prepare a bank reconciliation for March 31, 2012, and record the necessary cash adjustments.

Madison Company's Cash Ledger Reports the Following for the Month