Which of the following is likely to have the most price elastic demand? Group of answer choices All three would have the same el
1 answer:
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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
