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Norma-Jean [14]
2 years ago
7

A​ company's bank statement balance is $ 3,400 and shows a service charge of $ 12​, interest earned of $ 7​, and an NSF check fo

r $ 240. Deposits in transit total $ 1,000​; outstanding checks are $ 675. The​ company's bookkeeper erroneously recorded a check received from a customer as a $ 145 check when it was actually a $ 120 check. This created a book error of $ 25.
(1) What is the adjusted bank balance?
(2) What was the book balance of cash before the reconciliation?
Business
1 answer:
BigorU [14]2 years ago
7 0

Answer:

a. $3,725

b. $3,945

Explanation:

a. The computation of the adjusted cash balance is shown below:

= Bank statement balance + Deposits in transit - outstanding checks

= $3,400 + $1,000 -  $675

= $3,725

b. The computation of the book balance of cash before the reconciliation is shown below:

= Adjusted cash balance +  service charge + NSF checks - interest earned -  recording error

= $3,725 + $12 + $240 - $7 - $25

= $3,945

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Answer:

$3,675

Explanation:

Calculation to determine the amount of the annual interest tax shield

Using this formula

Annual interest tax shield=Outstanding face value*Coupon rate*Tax rate

Let plug in the formula

Annual interest tax shield = $250,000 *.07 *.21

Annual interest tax shield= $3,675

Therefore the amount of the annual interest tax shield is $3,675

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3 years ago
"when a profit-maximizing firm in a competitive market has zero economic profit, accounting profit"
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"when a profit-maximizing firm in a competitive market has zero economic profit, accounting profit"

The answer is positive.

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3 years ago
Under a just-in-time inventory system, a company can reduce the amount of working capital it needs to finance inventory, freeing
Gennadij [26K]

Answer:

True.

Explanation:

Under a just-in-time inventory system, a company can reduce the amount of working capital it needs to finance inventory, freeing capital for other uses and/or lowering the total capital requirements of the enterprise.

In Business management, Just-in-time (JIT) is an inventory management method used by a company wherein goods, products, components, and labor are made available exactly when needed or just few hours before they are needed in the production process.

Basically, It is an inventory management system that companies use to reduce wastage to the barest minimum, thereby, freeing capital for other uses and/or lowering the total capital requirements of the enterprise.

<em>Hence, just-in-time when used judiciously can help a company reduce the amount of working capital it needs to finance inventory management. </em>

4 0
3 years ago
America's basic cold war strategy emerged when the Truman administration adopted the recommendations of U.S. diplomat and Soviet
Goshia [24]

Answer:

The containment doctrine.

Explanation:

American government's fear of Soviet expansion (communism) triggered the entrance of the US into the cold war. During the 1940s the US developed an strategy of nuclear deterrence since it lacked sufficient amount of troops to confront the Soviet army in eastern Europe. The Truman Doctrine helped to expand the cold war to the whole world.

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When analyzing AE, it is important to know the factors that determine C, Ip, G and NX because those factors A. influence the lev
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D. All of the above.

Explanation:

In the Aggregate Expenditure model or approach to GDP, GDP is calculated using the following formula:

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  • G = Government spending
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