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.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 9E: Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of...
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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.
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