Answer: $65,600
Explanation:
Debits should equal credits
Debits = Cash + Equipment + Land
= 49,900 + 16,000 + 47,500
= $113,400
Credits = Accounts Payable + Common stock + Notes Payable
= 31,600 + 35,000 + 62,500
= $129,100
The difference will be added to the Cash account where the error is from.
= 49,900 + (129,100 - 113,400)
= $65,600
You join the accounting department of a major tech firm after graduation and are asked to assist in preparing end of year adjusting entries to prepare the firm’s financial statements for the end of the fiscal year. One major item you discover is a large part of the firm’s compensation expense is for stock grants and restricted stock units (RSUs). You are unsure how to account for these and so turn to the codification for guidance. What is the accounting for these forms of compensation and how are they presented on the financial statements?
Answer and Explanation:
Stock based compensation: stock based compensation which is non cash expense is charged as operating expenses to operating income as stipulated in Accounting Standards Codification (ASC) 718. After a year, the equity account is credited and cash is debited
Restricted stock units: contra equity is debited and common stock is credited. Part of the shares after vesting and recognition as income is charged and withheld for taxes
Carver Inc. purchased a building and the land on which the building is situated for a total cost of $879,500 cash. The land was appraised at $242,742 and the building at $768,683. Required What is the accounting term for this type of acquisition
Answer:
Lump-sum purchase
Explanation:
Lump-sum purchase occurs when two or more assets are acquired for a single price and requires that the purchase price be shared out to the assets bought on the basis of the fair market value of each asset acquired.
In this case, we allocated the purchase of $879,500 to each asset as follows:
Cost of land=$242,742/($242,742+$768,683)*$879,500
cost of land=$ 211,080
Cost of building=$768,683/($242,742+$768,683)*$879,500
Cost of building=$668,420
Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 32 percent for the next three years, with the growth rate falling off to a constant 6.2 percent thereafter. If the required return is 14 percent and the company just paid a dividend of $2.85, what is the current share price?
Answer:
P0 = $71.7850 rounded off to $71.79
Explanation:
The two stage growth model of DDM will be used to calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n +
[(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]
Where,
g1 is the initial growth rate g2 is the constant growth rateD0 is the dividend paid today or most recentlyr is the required rate of returnP0 = 2.85 * (1+0.32) / (1+0.14) + 2.85 * (1+0.32)^2 / (1+0.14)^2 +
2.85 * (1+0.32)^3 / (1+0.14)^3 +
[(2.85 * (1+0.32)^3 * (1+0.062) / (0.14 - 0.062)) / (1+0.14)^3]
P0 = $71.7850 rounded off to $71.79
To save for retirement, Jamie decides to invest in an annuity that pays 5% annual interest, compounded annually. If Jamie contributes $2,000 annually for 20 years, how much interest would she earn during the 20 years?
Answer:
Interest= $26,131.91
Explanation:
Giving the following information:
Annual deposit= $2,000
Number of periods= 20 years
Interest rate= 5%
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.05^20) - 1]} / 0.05
FV= $66,131.91
Now, we can determine the interest earned:
Interest= future value - total investment
Interest= 66,131.91 - 20*2,000
Interest= $26,131.91
Select the examples of common Administration and Administrative Support workplaces, employers, and tasks. Check
all that apply.
Marshall provides counseling to students and their families in his home.
Dina organizes and maintains student records in the front office of a public middle school.
Hal works in a library teaching classes about how to perform research.
Tamika works as the leader of a university, setting goals, reviewing budgets, and hiring workers.
Jorge organizes training events and activities for teachers in a private elementary school to improve their teaching
skills.
Jocelyn creates textbooks and instructional workbooks for students to use.
Answer:The answer is b,d,e or 2 4 5
Explanation:Cause I said so
Answer:
2,4,5
Explanation:
i got it right
Smith lives in a world with two time periods: current period and future period. His income in each period is $10,000. A) Draw his intertemporal budget constraint when the interest rate is 33%. B) If Smith consumes $10,000 in each period, show his best affordable bundle and the indifference curve that passes through it. C) Graphically show how Smith's current consumption changes when the interest rate falls to 0%.
Answer and Explanation:
Answer and explanation attached
An executive committee of a company includes one CEO, one General Manager, 3 Assistant General Managers, and 4 Executive Managers. Each one carries one vote. A decision will be taken based on
Answer:
A decision will be taken based on unanimous consensus which should be a fall out of constructive considerations of all the possible angles.
Explanation:
Under usual circumstances, the executive committee should comprise of the chairperson, vice-chairperson, secretary, and treasurer.
This, however, depends on the organization's corporate governance rules.
Decision making at the executive level in healthy organisations is not made based on one's ability to wield power or by the person or persons who wield the most authority.
The best decisions are those which uphold the highest logic. They should be taken regardless of who has suggested it for this is the attribute of superior minds - the ability to submit to a higher logic or solution regardless of its source.
Cheers
briefly explain goals of business
Suppose you are interested in obtaining a mortgage loan for $250,000 in order to purchase your principal residence. Your lender has suggested that you might be interested in taking an FHA loan. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully amortizing mortgage loan is 5% and the term is 30 years, what is your monthly mortgage payment assuming the UFMIP is financed
Answer:
$1,355.47
Explanation:
if you are going to finance the up-front mortgage insurance premium, then the total principal of the loan will increase by 1%, so it will be = $250,000 x 1.01 = $252,500. It is normal to finance UFMIP payments since they are additional closing costs and the whole purpose of FHA loans is to allow more people to be able to buy a house.
we can use the present value of an annuity formula to determine the monthly payment.
monthly payment = principal / PV annuity factor
principal = $252,500PV annuity factor = 186.2816monthly payment = $252,500 / 186.2816 = $1,355.474722 ≈ $1,355.47
I prepared an amortization schedule in order to check the answer. At the end the final balance is $3.83, but that is because you have to round to the nearest cent. If the payment is rounded to $1,355.48, the the balance is -$4.50.
a. Calculate book value per share of common stock. b. Assume that the company also had $1,000,000 worth of convertible bonds. The bonds are convertible at one $1,000 bond into 150 shares of stock. There are also stock options to buy 120,000 shares at a price of $5 per share. The stock is currently trading at $30 per share.Recalculate your answer to part a) taking into account dilutive effects of the above.
Answer:
The correct answer is "$8.65".
Explanation:
The given question is incomplete. Please find attachment of the complete question.
The given values are:
Total stockholders equity
= 4980000
Preferred stock
= 1000000
Number of common stock issued
= 460000
So,
The book value per share of common stock will be:
= [tex]\frac{ (Total \ Stockholders \ Equity - Preferred \ Stock)}{No. \ of \ common \ stock \ issued}[/tex]
On putting the values, we get
= [tex]\frac{(4980000 - 1000000)}{460000}[/tex]
= [tex]\frac{3980000}{460000}[/tex]
= [tex]8.65[/tex]$
The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process.
Manufacturing Costs Production Data
Beginning work in Beginning work in
process process 15,500 units, 1/10
complete
Materials $18,100 Units transferred out 54,800
Conversion costs 14,460 $32,560 Units started 51,200
Materials 218,685 Ending work in process 11,900 units, 1/5
complete
Labor 67,100
Overhead 58,531
Prepare a production cost report for the Welding Department for the month of February.
Answer:
Welding Department
Production cost report for the month of February
Inputs :
Beginning Work In Process :
Materials $18,100
Conversion costs $14,460
Added During the year :
Materials $218,685
Labor $67,100
Overhead $58,531
Total $376,876
Outputs :
Completed and Transferred Out $328,000
Units still in Process $48,076
Total $376,876
Explanation:
Calculation of Equivalent Units of Production with Respect to Materials and Conversion Costs.
1. Materials
Ending Work In Process (11,900 × 100%) 11,900
Units Completed and Transferred Out (54,800 × 100%) 54,800
Equivalent Units of Production with Respect to Materials 66,700
2. Conversion Costs
Ending Work In Process (11,900 × 1/5) 2,380
Units Completed and Transferred Out (54,800 × 100%) 54,800
Equivalent Units of Production with Respect to Materials 57,180
Calculation of Cost per Equivalent Unit of Production with Respect to Materials and Conversion Costs.
Cost per Equivalent Unit = Total Cost ÷ Total Equivalent Units
1. Materials
Cost per Equivalent Unit = ($18,100 + $218,685) ÷ 66,700
= $3.55
2. Conversion Cost
Cost per Equivalent Unit = ($14,460 + $67,100 + $58,531) ÷ 57,180
= $2.45
3. Total Cost
Total Cost = Materials + Conversion Cost
= $3.55 + $2.45
= $6.00
Calculation of Total Cost of Units Completed and Transferred Out and Total Cost of Units still in Process.
Completed and Transferred Out = Units Completed and Transferred Out × Total Cost
= 54,800 × $6.00
= $328,000
Units still in Process = Material Cost + Conversion Cost
= $3.55 × 11,900 + $2.45 × 2,380
= $48,076
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Note payable, 6%, due in 15 years 2,000,000 Total liabilities $3,000,000 Stockholders’ equity: Preferred $10 stock, $100 par (no change during year) $1,000,000 Common stock, $10 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year $1,570,000 Net income 930,000 $2,500,000 Preferred dividends $100,000 Common dividends 400,000 500,000 Balance, end of year 2,000,000 Total stockholders’ equity $5,000,000 Sales $18,900,000 Interest expense $120,000 Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal year, determine the following. Round to one decimal place.
Answer:
a. Ratio of fixed assets to long term liabilities = Fixed assets / Long term liabilities = $3,300,000/$2,000,000 = 1.6
b. Ratio of liabilities to stockholders equity = Total liabilities/Total stockholders equity = $3,000,000/$5,000,000 = 0.6
c. Ratio of net sales to assets = Net sales / Average Total assets(Excluding investments)
= $18,900,000 / [(7,000,000+8,000,000)/2] - 3,000,000
= $18,900,000 / 7,500,000 - 3,000,000
= $18,900,000 / $4,500,000
= 4.2
Note: Total assets at the end of the year = $3,000,000+$5,000,000 = $8,000,000
Flo enters into a contract with Global Shipping Ltd. to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would a. enforce the contract as is. b. allow the parties to rescind the contract. c. award damages to Global for the mistake. d. award damages to Flo for the mistake.
Answer:
b. Allow the parties to rescind the contract
Explanation:
Flo enters into a contract with Global Shipping Ltd. to insure and ship a painting from France to the United States at a certain amount mentioned in the contract. However, Global Shipping Ltd. makes a mistake in calculating the costs. As a result, a contract price is equal to the amount that is $1,000 less than the true cost. Most likely, a court would allow the parties to rescind the contract.
Option b. is correct.
Division A makes a part that it sells to customers outside of the company. Data concerning this part appear below: Selling price to outside customers $ 40 Variable cost per unit $ 30 Total fixed costs $ 10,000 Capacity in units 20,000 Division B of the same company would like to use the part manufactured by Division A in one of its products. Division B currently purchases a similar part made by an outside company for $38 per unit and would substitute the part made by Division A. Division B requires 5,000 units of the part each period. Division A has ample capacity to produce the units for Division B without any increase in fixed costs and without cutting into sales to outside customers. If Division A sells to Division B rather than to outside customers, the variable cost be unit would be $1 lower. What is the lowest acceptable transfer price Division A should accept
Answer:
Lower selling price= $29
Explanation:
Giving the following information:
Selling price to outside customers $40
Variable cost per unit $ 30
Total fixed costs $10,000
Capacity in units 20,000
The variable cost per unit would be $1 lower.
Because there is unused capacity, and it won't affect other sales. We will not take into account the fixed costs.
The lower selling price is the one that equals the unitary variable cost.
Unitary variable cost= 30 - 1= $29
Lower selling price= $29
Asonia Co. will pay a dividend of $4.60, $8.70, $11.55, and $13.30 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 10.8 percent on the company's stock, what is the stock price
Answer: $28.55
Explanation:
From the question, we are told that Asonia Co. will pay a dividend of $4.60, $8.70, $11.55, and $13.30 per share for each of the next four years, respectively and that the investors require a return of 10.8 percent on the company's stock.
The stock price will be calculated as:
= $4.60/(1 + 0.108) + $8.70/(1 + 0.108)^2 + $11.55/(1 + 0.108)^3 + $13.30/(1 + 0.108)^4
= $28.55
Therefore, the stick price is $28.55
To the extent that employers conduct a social media background check on job candidates, best practices are all of the following except_________
Answer:
Limit access to private information by friending someone
Explanation:
When conducting recruitment of an individual employers sometimes do background checks on the person's social media information.
There however needs to be consideration of the person's privacy in doing this.
There should be use of only publicly available information, background check can be done by a third party that is not making hiring decision, and do not request username and password for social media platforms.
It is not best practice to befriend a person on social media in order to obtain their private information.
Answer:
Social Media Mistakes
Taking pictures or talking about drug use
Drinking alcohol
Posting too often
Lying about an absence
Talking bad about previous job or coworker
Ranting about politics
Lying about eligibilities
Grammatical and spelling error
Explanation:
1- your FICO credit score based on which of these (there can be more than one right than one right answer )
A) how much money you owe
B) whether you've plaid on time or late
C) how long new credit you have
E) whether you asked for new credit recently
2- Your FICO credit score calculated on which of these (there can be more than one right answer)
A) Payment History
B) amounts owed
C) length of credit history
D) New Credit
E) Credit Mix
3- How long does a bankruptcy stay on your credit?
4- What should you do if you find something incorrect on your credit report?
5- You are entitled to two free credit reports per year per bureau
true or false
6- If you find something in error on your report and you report it in writing to the bureau, what must they do?
7- What is a credit freeze?
8- Does your age factor into your credit score
yes or No
9- Does your marital status factor into your credit score
yes or No
10- what is a mix of Credit mean?
11- At what percentage of credit card usage, does it start affecting your score in a negative way?
Answer:
Ll
Explanation:
1- all
2-all
3- 7 year
4-
5-f
6- the credit bureau investment your claim
8- ifree way to limit who can see your credit report
During the current quarter, a firm produces consumer goods and adds some of those goods to its inventory rather than selling them. The value of the goods added to inventory is:____.
a. not included in the current quarter GDP.
b. included in the current quarter GDP as a statistical discrepancy.
c. included in the current quarter GDP as consumption.
d. included in the current quarter GDP as investment.
Answer:
b) included in the current quarter GDP as investment
Explanation:
We are informed from the question that
During the current quarter, a firm produces consumer goods and adds some of those goods to its inventory rather than selling them.
In this case, The value of the goods added to inventory is included in the current quarter GDP as investment, the GDP which measure the growth rate as far as economics is concerned in the firm. It should be noted that any Inventories in this year are use to be recorded in the same year GDP, it doesn't matter if they are yet to be sold out.
Inventory can be regarded as valuable asset in business owner to be able to know the amount that it's in their hand at that period of time.
types are Work-In-Progress, finished goods, maintainable aw well as Raw Materials. Better financial decisions can be made if the type of inventory is known.
Peter Drucker championed several ideas that continue to be influential to this day, including decentralization, employees as corporation as a human community, and the importance of workers in the new information economy.
Explanation:
Drucker was a famous writer and professor who directly influenced modern management. His influence on management was so significant that he is also known as the father of management.
The main pillar of his studies is to recognize that the greatest resource of any organization is people.
Three of the pillars of Drucker's studies are: decentralization, which establishes greater flexibility in organizational management, where there is the inclusion of employees in decision making related to their role.
Drucker's second pillar concerns effective leaders, who according to him are those who motivate their team through inclusion, responsibility for their actions and focus on organizational opportunities, which translates into assertive leaders who make the organizational environment driven by action development, innovation, inclusion and productivity.
And finally, the importance of innovation, which comes from joint efforts of consistent work and which is essential for a company to remain competitive and well positioned in the market.
Midtown Holdings Inc. contracts to sell a commercial parking garage to Nuevo Property LLC. The contract provides that if Midtown does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is
Answer:
A penalty clause.
Explanation:
As the word penalty implies, it's said to come back as a sort of punishment towards who faults during a breach towards a contract, it can come as a punishment or forfeiture of a said paper, property or something tangible. it's sometimes seen to heavily levy it defaulters in an exceedingly monetary aspect during a lot of cases. An example will be seen when parties to a construction contract may agree that, if one party fails to deliver materials on time specified the project is delayed, it'll pay a hard and fast sum of cash per day, until delivery is created. It will be beneficial to use liquidated damages clauses, for various reasons.
8.Kline and Salomon form the KS Partnership as 50/50 partners. Kline contributes equipment that has a fair market value of $60,000 and an adjusted basis of $45,000. In addition, the equipment is subject to a $10,000 loan that KS Partnership is assuming. What amount represents Kline's initial basis in the partnership
Answer: $40,000
Explanation:
Kline brings in equipment that is worth $60,000 but has a basis of $45,000.
The equipment however is subject to a loan of $10,000.
This loan will have to be deducted from the basis. The partnership however is assuming the loan and Kline is only 50% liable in the partnership so Kline's basis will only be affected by half of the loan.
Basis = 45,000 - 5,000
= $40,000
Once you’ve saved 25 years for retirement, how much can you draw from the retirement account over the next 30 years? In cell B14, enter a formula to calculate how much you can pay yourself from the retirement account every month.
Answer:
you have to use the payment formula in excel:
=PMT (rate, nper, pv, [fv], [type])
where:
rate = the interest rate earned by your retirement account . If the distributions re annual, then use the annual rate, if the distributions are monthly, then you must adjust the effective monthly rate. nper = number of distributions. Assuming that you will only withdraw once a year, then nper = 30. If you are going to collect monthly distributions, then nper = 360. pv = the present value of your retirement account. fv (optional) = by default it = 0, so it is correct for this problem. type (optional) = by default the payments are considered an ordinary annuity, which should work in this case.for e.g., assuming that you have $1,000,000 in your retirement account, you can earn 6% interest rate and you will receive 30 distributions.
=PMT (6%,30,1000000, [fv], [type]) = -$72,648.91
Excel uses a minus sign because the principal will decrease as distributions are made.
Assume that, on January 1, 2021, Matsui Co. paid $1,296,000 for its investment in 48,000 shares of Yankee Inc. Further, assume that Yankee has 240,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $480,000 at January 1, 2021. The following information pertains to Yankee during 2021: Net income $ 240,000 Dividends declared and paid $ 72,000 Market price of common stock on 12/31/2021 $ 29 /share What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee
Answer:
$1,329,600
Explanation:
Calculation for the amount that Matsui would report in its year-end 2021 balance sheet for its investment in Yankee
First step is to find the Percentage of shares acquired
Percentage of shares acquired = 48,000 / 240,000 = 20%
Last step is to find the Balance sheet Amount to be reported
Using this formula
Investment = Cost + 20% of Net income - 20% of dividends declared
Let plug in the formula
Investment=$1,296,000 + (20% x $240,000) - (20% x $72,000 )
Investment=$1,296,000+$48,000-$14,400
Investment=$1,329,600
Therefore the amount that Matsui would report in its year-end 2021 balance sheet for its investment in Yankee will be $1,329,600
Bellingham Company produced 15,000 units of product that required 4 standard direct labor hours per unit. The standard variable overhead cost per unit is $0.90 per direct labor hour. The actual variable factory overhead was $52,770. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Answer: variable factory overhead controllable variance= -$1,230 which is Favorable.
Explanation:
Variance = Actual factory overhead – Budgeted allowance on standard hours allowed x Fixed expenses budgeted + variable expenses
Variable factory overhead controllable variance=Actual factory overhead-Standard Factory Overhead
But first.
Standard labor overheads cost == Units produced x standard direct labor hours per unit x standard overhead cost per unit per direct labor hour
15,000 x 4 x $0.90= $54,000
And the given
Actual overhead cost = $52,770
Therefore,
Variable factory overhead controllable variance= Actual factory overhead-
Standard Factory Overhead
= $52,770-$54,000= - $1,230 which is Favorable.
it favorable because the actual overhead cost is less than the standard overhead cost.
The favorable variable will be calculated by Actual overhead - Budgeted allowances on Standard hour X Fixed expenses + variable expenses in the similar way :
The Controllable of factory overhead is equal to Factory overhead - Standard factory overhead .
Unit produced 15000 X4(Standard direct labor ) X Cost per unit $0.09 = 54000USD.So the Actual Overhead cost will $52770
And the variable favorable cost will be ($1.230) which is less then the standard cost .
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You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
$400,000
Explanation:
Given the following :
Beginning Cash balance = $100,000
Net income during the year = $5,000,000
Dividend to common shareholders = $750,000
Purchase of machinery = $5,400,000
Depreciation expense = $450,000
Long term debt = $1,000,000
Rate = 5%
STATEMENT OF CASH FLOW:
Cashflow from operating activities :
Net income ___________5,000,000
Add: Depreciation exp. ___450,000
Net cash: ____________________5,450,000
Cashflow from. Investing Activities :
Purchase of machinery __(5,400,000)
Net cash: ____________________(5,400,000)
Cashflow from financing activities:
Payment of Dividend __(750,000)
Long term debt ______1,000,000
Net cash from financing __________250,000
Net increase in cash: ____________300,000
Beginning cash balance __________100,000
Year end Cash balance __________ 400,000
DEFINITION TERM 1. Subtract outstanding checks from the bank balance. 2. Compute the adjusted bank balance. 3. Enter the bank statement balance from the bank statement. 4. Add any unrecorded deposits to the bank balance. 5. Compute the adjusted book balance. 6. Add any unrecorded interest earned to the book balance. 7. Enter the company’s book balance from its accounting records. 8. Subtract bank fees from the book balance.
Complete Question:
What are the correct steps in preparing Bank reconciliation in a chronological order?
Answer:
1. Enter the bank statement balance from the bank statement.
2. Add any unrecorded deposits to the bank balance.
3. Subtract outstanding checks from the bank balance.
4. Compute the adjusted bank balance
5. Enter the company's book balance from its accounting records.
6. Add any unrecorded interest earned to the book balance.
7. Subtract bank fees from the book balance.
8. Compute the adjusted book balance.
Explanation:
In Financial accounting, bank reconciliation can be defined as an evaluation which give a complete details of the financial items responsible for any difference between the balance of the cash account in the balance sheet and the cash balance reported in an entity's bank statement. These reconciliations should be done at regular intervals so as to ensure a balanced record of the cash account are kept by an organization or firm.
A bank reconciliation mainly computed by an accountant, gives the difference between the balance in relation to the bank statement and the cash balance with respect to the accounting records of the depositor in a particular financial institution.
The steps in preparing Bank Reconciliation in a chronological order are;
1. You should enter the bank statement balance from the bank statement.
2. Add any unrecorded deposits to the bank balance.
3. Subtract outstanding checks from the bank balance.
4. Compute the adjusted bank balance
5. Enter the company's book balance from its accounting records.
6. Add any unrecorded interest earned to the book balance.
7. Subtract bank fees from the book balance.
8. Compute the adjusted book balance.
The main purpose of a bank reconciliation is to ensure an accuracy of the depositor's financial information and that of it's bank records.
In a nutshell, after a reconciliation of the bank statement, the adjusted bank balance should be equal to the company's ending adjusted cash balance on the balance sheet.
The correct steps in preparing Bank reconciliation in a chronological order: 1. Enter the bank statement balance from the bank statement.
2. Add any unrecorded deposits to the bank balance.
3. Subtract outstanding checks from the bank balance.
4. Compute the adjusted bank balance
5. Enter the company's book balance from its accounting records.
6. Add any unrecorded interest earned to the book balance.
7. Subtract bank fees from the book balance.
8. Compute the adjusted book balance.
Bank reconciliation is described in financial accounting as an evaluation that provides detailed details of the financial items responsible for any difference between the balance of the cash account on the balance sheet and the cash balance shown on an entity's bank statement. These reconciliations should be performed at regular periods to guarantee that an organisation or corporation maintains a balanced record of the cash account.
A bank reconciliation, which is mostly computed by an accountant, provides the difference between the balance on the bank statement and the cash balance on the depositor's accounting records at a certain financial institution.
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Equipment $ 7,000 Office supplies $ 2,100 Salaries expense 3,600 Rental revenue 1,100 Consulting revenue 15,000 Advertising expense 520 Cash 9,200 Prepaid insurance 1,600 Utilities expense 320 Accounts payable 3,220 Note payable 3,000 Note receivable 3,100 Accounts receivable 4,100 Rent expense 2,600 A. Lopez, Withdrawals 2,600 Unearned revenue 420 Required: 1. Prepare a March income statement for the business. 2. Prepare a March statement of owner’s equity. The owner’s capital account balance at February 28 was $0, and the owner invested $14,000 cash in the company on March 1. 3. Prepare a March 31 balance sheet. Hint: Use the owner’s capital account balance calculated in part 2.
Answer:
Required: 1. Income statement for the month end March 31 .
$ $
Rental revenue 1,100
Consulting revenue 15,000
Total Revenue 16,100
Less Expenses :
Salaries expense 3,600
Advertising expense 520
Utilities expense 320
Rent expense 2,600 (7,040)
Net Income/(loss) 9,060
Required: 2. Statement of owner’s equity for the month end March 31.
Beginning Balance $0
Capital $14,000
Add Profit earned during the month $ 9,060
Less A. Lopez, Withdrawals ($2,600)
Ending Balance $20,460
Required: 3. Balance Sheet as at March 31.
Non Current Assets
Equipment $ 7,000
Total Non Current Assets $ 7,000
Current Assets
Office supplies $ 2,100
Cash $ 9,200
Prepaid insurance $1,600
Note receivable $ 3,100
Accounts receivable $4,100
Total Current Assets $20,100
Total Assets $27,100
Equity and Liabilities
Equity
Equity $20,460
Total Equity $20,460
Liabilities
Accounts payable $ 3,220
Unearned revenue $ 420
Note payable $ 3,000
Total Liabilities $6,640
Total Equity and Liabilities $27,100
Explanation:
First prepare the Income statement to determine the profit earned during the year.
Then, include this profit in the statement of owners equity to determine the month end balance.
Lastly, prepare the balance sheet, remember to include the equity balance you have calculated.
If a firm raised its pricea and discovered that its toatl revenue fell, then the demand for its product is:______.
a. relatively inelastic.
b. perfectly inelastic.
c. income inferior.
d. relatively elastic.
Answer:
Option d (Relatively elastic) would be the correct solution.
Explanation:
The demand for some of its commodities becomes relatively elastic, i.e. the price drop contributed to a large decrease or change in the number requested, thus lowering the overall sales. It could be contrasted to other options for elasticity-comparatively inelastic, completely inelastic, perfectly elastic even elastic units.All 3 other options are not connected to the hypothetical offered. So, the option here was the best one.
Dana, who is a trained yoga instructor, spends 4 hours on Monday baking and packing 10 boxes of cookies. She sells the cookies for $10 a box. Given that she can also teach yoga for $80 an hour, what is her opportunity cost of baking cookies?A. $220 B. $800 C. $320 D. $420 E. $100
Answer:
c. $320
Explanation:
Opportunity cost is an economic term for expressing cost in terms of forgone alternatives. The opportunity cost of Dana is calculated as;
Hours spent baking cookies = 4 hours, the amount earned per hour when Dana is working as yoga instructor = $80.
Therefore, the total opportunity cost of Dana, when she is baking is cookies;
= 4 hours × $80
= $320.
"A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 229 units per day. Annual demand is currently 70,000 units. It is forecasted that within two years, annual demand will triple. How many cells will the company require to satisfy predicted demand under these conditions? Assume 243 workdays per year."
Answer:
Number of cells needed = 4
Explanation:
The current output averages 200 units per cell, but the output will soon increase to 229 units per cell per day due to productivity improvements.
The current demand is 70000 units per year and it will triple in 2 years. Hence annual demand to be fulfilled is 70,000*3 = 210,000 units per year.
Assuming 243 workdays per year
Hence, Output per day * 243 = 210000
Output per day = 210000 / 243
Output per day = 864.20
As each cell will produce 229 units per day, number of cells needed will be 864.20 / 229
Hence, Number of cells needed = 4