Answer:
The adjusted cash balance per bank at July 31 is <u>$8,720</u>
Explanation:
Adjusted cash balance is the cash balance calculated after required adjustments in the balance as per bank or balance as per record of the entity having that bank account.
Accroding to the bank reconciliation statement
- The outstanding checks are deducted from the cash balance as per bank because these are the check issued but not be presented in the bank until the end of a period.
- On the other hand, the deposit in transit is the cash that is to be received but this balance is in the clearing process of the check.
- Bank Service charges is already adjusted in the balance as per bank.
Adjusted Balance can be calculated as follow
Cash balance as per Bank ______________ $8,085
Less: Outstanding Checks ______________ $755
Add: Deposit in transit _________________ <u>$1,390</u>
Adjusted Cash balance ________________ <u>$8,720</u>
Yes, because it gives you an opportunity to put forth money for the future on what to do with it. but only if you reach the zero at the end of the month. you can use it in many ways like emergency funds or an envelope system.
Answer:
(a) Issued $50,000 par value common stock for cash = Financing Activities
b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 = Non-cash Investing and Financing Activities
(d) Declared and paid a cash dividend of $18,000 = Financing Activities
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities
(f) Collected $16,000 from sale of goods = Operating Activities
Explanation:
The Cash flows related to raising of capital is known as Cash flow from Financing Activities.
The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.
The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.
Answer:
A. Date Account Title Debit Credit
Insurance expense $30,700
($3000+$32500-$4800)
Prepaid insurance $30,700
B. Date Account Title Debit Credit
Insurance expense $30,700
Prepaid insurance $30,700
