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3 years ago

An accounting clerk for Chesner Co. prepared the following bank reconciliation:

Business

1 answer:

Kazeer [188]3 years ago

4 0

Answer:

Explanation:

Bank reconciliation

Chesner Co.

July 31,2016

Cash balance according to bank statement $20,300

Adjustments:

Add:Deposit in transit on July 31 7200

Less:Outstanding checks -3585

Adjusted balance as per bank $23,915

Cash balance according to company’s records 11,100

Adjustments:

Add:Note for $12,000 collected by bank, including interest 12,480

Less:Bank service Charges -25

Add:Error in recording Check No. 1056 as $950 instead of $590 360

Adjusted balance as per Books 23,915

B. $23,915 should be reported to cash

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Describe a decision that you or your company made that involved opportunity costs that should have been considered. Why did your

Kaylis [27]

Answer:

Explanation:

My E-Commerce business has two main decision-makers. As a team, we had a budget of $1000 USD which we decided to use on marketing. We ultimately decided on placing banner ads on 2 popular sites that matched our products. Doing this we missed out on other opportunity costs such as adding another product line and marketing sample products to popular influencers. Both of which should have been considered because they could have just as easily brought as many or even more customers than having placed the ads.

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3 years ago

The Clyde Corporation's variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will

Butoxors [25]

Answer:

Increase in income= $19,200

Explanation:

Giving the following information:

Clyde Corporation's variable expenses are 40% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $27,000.

Increase in income= increase in sales - increase in variable cost - marketing campaign

Increase in income= 77,000 - (77,000*0.40) - 27,000= $19,200

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3 years ago

Consider a call option on an asset with an exercise price of $100, a put option on that same asset with an exercise price of $10

zubka84 [21]

Answer: The values are missing below are the values

a. $105

b. $95

answer :

a) $5

b) -$5 ( loss )

Explanation:

From the perspective of the long position for each of the two options upon expiration

a) For $105

for the long position ( long call ) since the expired price > than the exercise price

i.e. $105 > $100 the profit = $105 - $100 = $5

b) For $95

For the long position ( long call ) since the expired price < than the exercise price

i.e. $95 < $100 the profit = $95 - $100 = - $5 ( a loss is incurred )

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3 years ago

In one hour of labor input, South Korea can produce either 100 computer chips or 50 bed linens. In the U.S., in one hour of labo

tangare [24]

Answer:

b. The U.S. has an absolute advantage in computer chips manufacturing.

Explanation:

South Korea's opportunity cost of producing 1 bed linen = 100/50 = 2 computer chips. Where, US' opportunity cost of producing 1 bed linen = 150/100 = 1.5 computer chips.

As US' opportunity cost of producing 1 bed linen is less than that of South Korea's , Therefore, US has comparative advantage in production of bed linen and south korea will have comparative advantage in production of the other good i.e. computer chips.

Now looking at the absolute advantage, US has absolute advantage in production of both goods i.e. Bed linen and computer chips, because using same one hour of labor input, US can produce more bed linen and computer chips than South korea does.

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3 years ago

You purchase one IBM July 90 call contract for a premium of $4. The stock has a 2 for 1 split prior to the expiration date. You

Jet001 [13]

Answer:

$200 profit

Explanation:

Call profit

= $2 {0, [$48 - ($90/2)(100)]} - $400 = $200$

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4 years ago