Uniform Supply accepted a $4,800, 90-day, 10% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on
1 answer:
You might be interested in
Answer:
= 0.3274 or, 32.74%
Explanation:
We know,
Capital Structure = Debt + Common Stock + Preferred stock
Given,
Common Stock = 4,000,000 shares
Share price = $21
Total common stock = No. of shares x share price
Total common stock = 4,000,000 shares × $21 = $84,000,000
Preferred Stock = 3,000,000 shares
Share price = $10
Total preferred stock = $10 x 3,000,000 shares
Total preferred stock = $30,000,000
Debt rate = 111% = 1.11
Debt = 50,000 bonds x $1000 par x 1.11
Debt = $55,500,000
Total Capital = $(55,500,000 + 84,000,000 + 30,000,000)
Total capital structure = $169,500,000
The weight for debt in the computation of OMG's WACC
=
=
= 0.3274
or, 32.74%
Answer:
Harrison company
Step 1.
Preparation of adjusted Cash Book
Balance as at July 31, 2016 = $40,293
Add: bal. of Deposit by credit customer = ($3,100 - $310) = $2,790
Deduct: Bank Service charge = -$30
Deduct: NSF checks = -$1,750
Deduct: loan repayment plus interest = -$3,870
Adjusted Balance =$37,433
Step 2. Bank reconciliation statement
As at 31st July 2016
Balance as per Bank Statement = $38,293
Deduct: uncleared Cheques = -$8,530
Add: Deposits outstanding = $7,400
Add: over disbursement by bank due for recovery = $270
Adjusted Bank Statement = $37,433
Compared to Adjusted Cash Book = $37,433
Difference = $0.
Step 3.
Journal entries required
Debit Cash Account with $2,790
Credit Account Receivables with $2,790
(Under recorded Customer deposit on sales)
Debit NSF expense = $1,750
Debit Loan Account with $2,900
Debit interest on Loan Account with $970
Debit Bank Charges expense a account with $30
Credit Cash Account with $5,650
(Direct debits to bank account on sundry transactions)
Explanation:
A bank reconciliation statement is presented to reconcile a 3rd party (Bank) statement of our Account and the Account maintained by the business in house.
The objective of the Bank reconciliation statement includes:
1. Identify the missing entries in either records
2. Flag the corrections the Bank needs to do to bring our balance to a correct state
3. Pass Journals to capture entries we have missed out or captured incorrectly
4. Identify unassigned entries for investigation
