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Madison Company's cash ledger reports the following for the month ending March 31. Deposits: Date 3/4 3/11 3/18 3/25 3/26- 3/31 Amount $ 1,800 1,800 4,200 3,400 No. Checks: 541 542 543 544 Date 3/2 3/8 3/12 3/19 Amount $ 5,400 600 2,500 2,000 Cash receipts: 2,600 545 3/27 700 $ 13,800 546 3/28 3/30 547 800 1,400 $13, 400 Balance on March 1 Receipts Disbursements Balance on March 31 $ 5,900 13,800 (13,400) $ 6,300 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 $7,874. b. Cash receipts of $2,600 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 $3,100 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 $1,400. g. Madison's checking account earns interest based on the average daily balance. The amount of interest earned for March is $51. h. Last year, one of Madison's top executives borrowed $4,250 from Madison. On March 24, the executive paid $4,530 ($4,250 borrowed amount plus $280 interest) directly to the bank in payment for the borrowing. 1. The bank charged the following service fees: $38 for NSF check, $18 for automatic withdrawal for rent payment, and $21 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.) MADISON COMPANY Bank Reconciliation March 31 Bank's Cash Balance Company's Cash Balance Before reconciliation Before reconciliation After reconciliation After reconciliation 2. Record the necessary cash adjustments.(If no entry is required for a transaction/event, select "No Journal Entry Requires first account field.) View transaction list Journal entry worksheet Record the entries that increase cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal A

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