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levacccp [35]
3 years ago
8

The Cash account of Safe and Secure Security Systems reported a balance of $2,490 at May 31, 2011. There were outstanding checks

totaling $500 and a May 31 deposit in transit of $300. The bank statement, which came from Tri Cities Bank, listed the May 31 balance of $3,360. Included in the bank balance was a collection of $680 on account from Ryan Saar, a Safe and Secure customer who pays the bank directly. The bank statement also shows a $20 service charge and $10 of interest revenue that Safe and Secure earned on its bank balance.
Prepare Safe and Secure’s bank reconciliation at May 31.
Business
1 answer:
Alja [10]3 years ago
5 0
Book Balance :             $2,490                        Bank Balance:           $3,360
Add:                                                              Add:
Ryan Saar payment          680                         Deposits in Transit          300   
Interest Revenue                 10     
Less:                                                            Less:
Service Charge                ($20)                       Outstanding Checks       (500)
                             ===========                                              ==========
Cash Balance              $3,160                        Bank Balance            $3,160

*The payment made by Ryan Saar was directly deposited to the bank; therefor, it is not yet recorded in the company books. The same with the Interest Revenue Earned and Service Charge Fees.

*The Deposits in Transit and Outstanding Checks are not yet recorded in the bank because the deposits are still in transit while the outstanding checks are not yet cashed; however, these items were already recorded in the company books.
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Haven Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $600,000 and cre
Rufina [12.5K]

Answer:

c.

Bad Debts Expense 22,000

Allowance for Doubtful Accounts 22,000

Explanation:

Haven uses the percentage of sales method for recording bad debts expense. Under this method bad debts expense is calculated as percentage of credit sales of the period. Cash sales are ignored. Bad debts expense is calculated by the formula:

Bad Debts Expense = Estimated % × Credit Sales

= 1% x $2,200,000 = $22,000

The company will make adjusting entry below:

Debit Bad Debts Expense $22,000

Credit Allowance for Doubtful Accounts $22,000

6 0
3 years ago
A polisher costs $10,000 and will cost $20,000 a year to operate and maintain. If the discount rate is 10 percent and the polish
kirill115 [55]

Answer:

EAC $22,638

Explanation:

                            0               1                  2           3                4             5

Cost                    (10,000)

Cashflows                            20,000      20,000   20,000     20,000    20,000

PV factor                              1/1.1             1/1.1^2       1/1.1^3        1/1.1^4     1/1.1^5

NPV=Cashflow*PV Factor    18,182       16,529        15,026    13,660       12,418

NPV=10,000+18,182+16529+15,026+13,660+12,418)=85,815

EAC=NPV*r/1-(1+r)^-n=85,815*.1/(1-(1+.1)^-5=$22,638                              

5 0
3 years ago
Types of bonds
aliina [53]

Answer: 1. A . Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.

2. A. The New York City government

3. B. Municipal bonds

4. A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments

5. B. Treasury bonds

Explanation:

1. Treasury Bonds are known as the safest bonds in the world and so are generally considered risk-less. However this is not so as they still fall victim to Interest rate risk which is the risk that their prices will decline when interest rates rise because bond prices are inversely related to price.

2. The City of New York issued to bonds in question so it is a New York City Government bond.

3. Municipal Bonds are issued by a state, county or a municipality so the above is a Municipal bond as it was issued by the City of New York.

4. Municipal Bonds attract no Federal taxes and when buying a Municipal bond as a resident of the Municipality you are in, you will.not get charged the Municipal taxes either on the bond coupon payments.

5. Default risk is the risk that the issuer will not pay back. US Treasury Bonds are known as the safest in the world and have not been defaulted on in over a century. They therefore have the lowest default risk.

6 0
3 years ago
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include: Direct materials p
Kaylis [27]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Sales= 5,000 units

Selling price= $75

Product costs include:

Direct materials per helmet= $30

Direct labor per helmet= $8

Variable factory overhead per helmet= $4

Total fixed factory overhead 20,000

Variable selling expense is a commission of $3 per helmet

The fixed selling and administrative expense totals $29,500

<u>The total variable cost is calculated as follow:</u>

<u></u>

Total variable cost= unitary variable cost*number of units

Unitary variable cost= direct material + direct labor + variable overhead + variable selling and administrative

Total variable cost= (30 + 8 + 4 + 3)*5,000= $225,000

Total fixed costs= 20,000 + 29,500= $49,500

<u>Income statement:</u>

Sales= 5,000*75= 375,000

Total variable cost= (225,000)

Contribution margin= 150,000

Total fixed factory overhead= (20,000)

The fixed selling and administrative expense= (29,500)

Net operating income= $100,500

3 0
3 years ago
Danaher Woodworking Corporation produces fine furniture. The company uses a job-order costing system in which its predetermined
sukhopar [10]

Answer:

a. Calculate the predetermined overhead rate based on capacity.

  • predetermined overhead rate = $26,190 / 279 hours = $93.87 per hour

b. Calculate the manufacturing overhead applied.

  • applied manufacturing overhead = $93.87 per hour x 240 hours = $22,528.80 ≈ $22,529

c. Calculate the cost of unused capacity.

  • cost of unused capacity = (279 hours - 240 hours) x $93.87 per hour = 39 x $93.87 per hour = $3,660.93 ≈ $3,661

or

  • $26,190 - $22,529 = $3,661
3 0
3 years ago
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