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kogti [31]
3 years ago
6

"The Carla Vista Boat Company's bank statement for the month of November showed a balance per bank of $8,500. The company's Cash

account in the general ledger had a balance of $5,536 at November 30. Other information is as follows:
(1) Cash receipts for November 30 recorded on the company's books were $6,480 but this amount does not appear on the bank statement.
(2) The bank statement shows a debit memorandum for $50 for check printing charges.
(3) Check No. 119 payable to Sunland Company was recorded in the cash payments journal and cleared the bank for $368. A review of the accounts payable subsidiary ledger shows a $18 credit balance in the account of Sunland Company and that the payment to them should have been for $386.
(4) The total amount of checks still outstanding at November 30 amounted to $6,260.
(5) Check No. 138 was correctly written and paid by the bank for $506. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $560.
(6) The bank returned an NSF check from a customer for $700. (7) The bank included a credit memorandum for $3,880 which represents a collection of a customer's note by the bank for the company; the principal amount of the note was $3,748 and interest was $132. Interest has not been accrued. Prepare a bank reconciliation for the Carla Vista Boat Company at November 30.

Prepare a bank reconciliation for the Carla Vista Boat Company at November 30 AND Prepare any adjusting entries necessary as a result of the bank reconciliation
Business
1 answer:
DaniilM [7]3 years ago
4 0

Answer:

Explanation:

                                    The Carla Boat Company

                                     Bank Reconciliation Statement

                                     as at 30th November

Balance as per bank balance                                          $8,500

Add:  Uncredited payment                                              $6,480

Add:   Bank Charges                                                         $50

Add:  Returned Chq                                                           $700

Less:  Outstanding Chqs                                                  ($6,260)

Less:   Note received                                                         ($3,880)

Less: transposition error on payment                             ($54)

Balance as per cash book                                                 $5,536

Journal entries for transactions:

1. Debit : Bank Charges Expenses                         $50

  Credit: Bank Account                                            $50

Being bank charges expenses for the month of Nov

2. Debit: Cash in bank                                           $54

    Credit: Account Payable                                   $54

Being transposition error on Check No 138

3. Debit: Account payable                                      $700

   Credit: Bank Account                                           $700

Being NSF check returned

4. Debit: Bank Account                                           $3,880

   Credit: Notes Receivable                                   $3,748

    Credit: Interest on investment                          $132

Being note receivable and accrued int

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Answer:

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Annual demand for cases,  D = \frac{\textup{Number of fertilizers bags needed}}{\textup{Number of bags per case}}

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thus,

Annual unit holding cost per case, C_h = 30% of $50 i.e $15

Thus,

Economic Order quantity ( EOQ ) =\sqrt{\frac{2C_oD}{C_h}}

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Now,

Annual ordering cost = Ordering cost × Number of orders

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3 years ago
A company has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.
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Answer:

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The total estimated bad debts are $4,800 (= $80,000 x 6%). So the Allowance for Doubtful Accounts account ending balance should be $4,800. Since this account is a contra asset account, the ending balance should be $4,800 credited.

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The journal entries should be:

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Disclaimer: The question is incomplete. Please read below to find the missing content.

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Compound interest is better than simple interest especially when it comes to investing. Funds grow at a faster rate in compound interest than simple interest.

Simple interest is the interest on only the principal while compound interest is the interest on principal and on the previous accumulated interest (that is, interest on interest).

The formula for simple interest is:

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Where P is the principal

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