(solution) Madison Company's cash ledger reports the following for the month

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

 

	Date	Amount		No.	Date	Amount
Deposits:	3/4	$  1,200	Checks:	541	3/2	$ 5,600
	3/11	1,600		542	3/8	800
	3/18	4,300		543	3/12	2,900
	3/25	3,100		544	3/19	1,800
Cash receipts:	3/26-3/31	2,300		545	3/27	500
				546	3/28	800
		$ 12,500		547	3/30	1,400
Balance on March 1		$   5,800				$13,800
Receipts		12,500
Disbursements		(13,800)
Balance on March 31		$   4,500

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 $6,462.
b. Cash receipts of $2,300 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 $430 that did not clear the bank (NSF check).
e. Check 543 was written for $3,500 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 $1,250.
g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $53.
h. Last year, one of Madison's top executives borrowed $4,400 from Madison. On March 24, the executive paid $4,660 ($4,400 borrowed amount plus $260 interest) directly to the bank in payment for the borrowing.
i. The bank charged the following service fees: $37 for NSF check, $10 for automatic withdrawal for rent payment, and $24 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.)

2..  Record the necessary cash adjustments.

 

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