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Nezavi [6.7K]
3 years ago
15

Wright Company's cash account shows a $31,100 debit balance and its bank statement shows $29,400 on deposit at the close of busi

ness on May 31. O The May 31 bank statement lists $280 in bank service charges; the company has not yet recorded the cost of these services. O Outstanding checks as of May 31 total $7,400. O May 31 cash receipts of $8,000 were placed in the bank’s night depository after banking hours and were not recorded on the May 31 bank statement. O In reviewing the bank statement, a $580 check written by Smith Company was mistakenly drawn against Wright’s account. O The bank statement shows a $240 NSF check from a customer; the company has not yet recorded this NSF check. Prepare a bank reconciliation for the company using the above information.
Business
1 answer:
nlexa [21]3 years ago
3 0

Answer:

<u>Bank Statement:</u>     29,400

Outstanding checks (7,400)

Deposit in Transit      8,000

bank mistake               580

Adjusted bank       30,580

<u>Cash account: </u>  31,100

bank charges      (280)

NSF                      (240)

Adjusted Cash   30,580

Explanation:

From the bank we adjust for the bank unknow information and mistakes.

In this case, the bank is unaware of the oustanding check and the deposit from the company so this are adjustemtn we must do.

Also the bank made a mistake, It draw(subtract from our account) for a check which wasn't ours. Thus, we mus amend this mistake

For our cahs acount we also adjust for unknow information and mistake in our behalf:

We didn't know about the amount of the bank charge nor the non.sufficient funds until we are notice by the bank statement

The check was entered as cash from teh accounting but the check wasn't honor so, it didn't receive cash.

Both end up with the same amount which marks the reconciliation as correct.

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Which two methods are used most often when establishing a transfer price??
SashulF [63]
Cost-based transfer pricing and market-based transfer pricing are the methods that usually used in establishing a transfer price. 

The cost-based pricing is used determine the price of the product by the method of calculation. It is the best way the company can maximize profit. 


The market-based pricing it when the company will look for the other product with similar price and evaluate it. 
4 0
3 years ago
The preemptive right is important to shareholders because it a. allows managers to buy additional shares below the current marke
love history [14]

Answer:

C. protects the current shareholders against a dilution of their ownership interests.

Explanation:

Preemptive rights are rights given to shareholders in an organization allowing them to buy additional shares in any future issue in order to maintain their percentage ownership, before the shares are available to the general public. It guards against dilution or decrease in a shareholders stake or ownership interest buy allowing them buy more shares for future issues before it is available for the general public to own shares. In doing so, shareholders avoid involuntary dilution.

6 0
3 years ago
Read 2 more answers
The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $
sweet [91]

Answer:

The planned purchases are given as  $34,500 while the value of OTB is $28,900

Explanation:

The Planned purchases is given as

Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory = Planned Purchases

So here the planned sales are 25000

The planned Reductions are 1500

The End of Month inventory is 88000

The Beginning of Month Inventory is 80000 So the value is given as

25000+1500+88000-80000= Planned Purchases

Planned Purchases =34500

The OTB is given as

OTB=Planned Purchases-Commitment

OTB=34500-5600

OTB=28900

7 0
3 years ago
On December 31, 2019, the ledger of Lopez Company contained the following account balances: Cash $ 66,000 Maria Lopez, Drawing $
vlada-n [284]

Answer:

1. Dec 31, 2019

Dr Fees Income $107,500

Cr Income Summary $107,500

2. Dec 31, 2019

Dr Income summary 60,000

Cr Salaries expense 34,000

Cr Supplies expense 6,000

Cr Utilities expense 9,300

Cr Telephone expense 5200

Cr Depreciation expense 5500

3. Dec 31, 2019

Dr Income summary 47,500

Cr Retained earnings 47,500

4. Dec 31, 2019

Dr Maria lopez, capital 52,000

Cr Maria lopez, drawing 52,000

Explanation:

Preparation of the closing entries for the above transactions

1. Dec 31, 2019

Dr Fees Income $107,500

Cr Income Summary $107,500

(To close revenue account)

2. Dec 31, 2019

Dr Income summary 60,000

(5500+5200+9300+6000+34000)

Cr Salaries expense 34,000

Cr Supplies expense 6,000

Cr Utilities expense 9,300

Cr Telephone expense 5200

Cr Depreciation expense 5500

(To close expenses account)

3. Dec 31, 2019

Dr Income summary 47,500

($107,500-60,000)

Cr Retained earnings 47,500

(To close income summary account)

4. Dec 31, 2019

Dr Maria lopez, capital 52,000

Cr Maria lopez, drawing 52,000

(To close drawings account)

6 0
2 years ago
In the life cycle theory of consumption, the motive to save is:A.To be able to open a business.B.To become wealthy.C.To leave a
DanielleElmas [232]

Answer: To afford to retire

                       

Explanation: The life cycle theory was established by Modigliani in 1957. This theory states that a rational individual manages its expenses with the motive of saving sufficient amount till his or her retirement.

As per this theory, the individual consumes almost same amount of income which leads to the situation of borrowing in times of low income and savings in times of high income.

However the minor differences leads to savings high than borrowings in times of low income the individual significant lowers his or her capital expenditure.

4 0
3 years ago
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