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Zinaida [17]
3 years ago
7

EcoMart establishes a $1,050 petty cash fund on May 2. On May 30, the fund shows $312 in cash along with receipts for the follow

ing expenditures: transportation-in, $120; postage expenses, $369; and miscellaneous expenses, $240. The petty cashier could not account for a $9 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund, and (3) June 1 entry to increase the fund to $1,200. View transaction list Journal entry worksheet 2 Record the May 2 entry to establish the fund.
Business
1 answer:
fredd [130]3 years ago
7 0

EcoMart establishes General Journal

May 2

Dr Petty cash 1050

Cr Cash 1050

May 30

Dr Merchandise inventory 120

Dr Postage expense 359

Dr Miscellaneous expenses 240

Dr Cash short and over 9

Cr Cash728

June 1

Dr Petty cash 150

Cr Cash 150

Workings:

May 30,Merchandise inventory 120+ Postage expense 359+ Miscellaneous expenses 240+ Cash short and over 9 = $728

June 1

1050-1200= 150

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High operating leverage means: Select one: a. 1. The company has relatively low fixed costs. b. 2. The company has relatively hi
klemol [59]

Answer:

High operating leverage means:

b. 2. The company has relatively high fixed costs.

d. 4. The company will have to sell fewer units than a comparable company with low operating leverage to break even.

Explanation:

High operating leverage implies that the entity has high gross margin and only needs to sell fewer units to break-even.  When a company has a high operating leverage, it makes a large additional income from just selling a unit of its product.  The variable cost per unit is usually low for such a company, though the fixed costs are relatively high.

5 0
3 years ago
Manfred is the father of a 16-year-old boy. He notices that his son heads over to the other side of town after getting back from
IRISSAK [1]

Answer: Manfred's son is more likely to engage in delinquency and early sexual behavior.

Explanation:

Since the son is hanging out with older people he will want to be like them. He may also suffer from peer pressure and believe that he needs to do as they do to fit in with the new crowd.

Since the son is going to another part of the town, he may believe that his father and mother will not check on him. He also may do this so no one that he knows from his side of town can tell on him since they don't hang out there.

8 0
3 years ago
Golding Bank provided the following data about its resources and activities for its checking account process: Resources Activiti
N76 [4]

Answer:

Please see below

Explanation:

The question above is incomplete. See concluding parts

2. Calculate the activity rates for the four activities . Round your answers to the nearest cent. Processing account per account issuing statement processing transactions per enquiry. If the total number of statement issued was 20,000 calculate the cost of the issuing statements activity.

1. Capacity cost rate

= Total resources / Total checking processing hours

= $396,000 / 22,000

= $18 per hour

2. Calculate the activity rates for the four activity. Round your answers to the nearest cent.

Processing accounts

= 0.20 × $18 = $3.6 per account

Issuing statements

= 0.10 × $18 = $1.8 per statement

Processing transactions

= 0.05 × $18 = $0.9 per transaction

Answering inquiries

= 0.15 × $18 = $2.7 per inquiry

If the total of issuing statement was 20,000 calculate the cost of issuing the issuing statement activity

Issuing statement

= 20,000 × $1.8

= $36,000

3 0
3 years ago
Northwestern Lumber Products currently has 17,500 shares of stock outstanding. Patricia, the financial manager, is considering i
SpyIntel [72]

Answer:

<em>15,101.15 shares</em>

Explanation:

<em>Northwestern Lumber products has =17,500 shares of stock</em>

<em>The Manager Patricia considers issuing  $135,000 of debt, at an interest rate of 6.6%</em>

<em>Let us find how many shares of stock will be outstanding once the debt is issued,</em>

<em>Given that </em>

<em>$65,000/17,500 =  ($65,000 − 135,000(.066))/X </em>

<em>Then X = 15,101.15 shares</em>

5 0
4 years ago
Which of the following statements regarding the center of gravity method is false
grigory [225]

Answer:

Consider the following explanation

Explanation:

False statement are as follows,

A)  It is designed to minimize the maximum possible travel distance to any location

This statemet is false

Explanation- Center of gravity has nothing to do with travel distance or any kind of diisplacement. Following sentence is used in cargo industry ffor effieicent transportation.

C) And D) Are also false

Explanation- They are also a part of cargo management hence cannot be used in center of gravity method.

Only Option B) Is correct

8 0
3 years ago
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