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serious [3.7K]
3 years ago
10

On October 31, 2021, Damon Company’s general ledger shows a checking account balance of $8,400. The company’s cash receipts for

the month total $74,340, of which $71,300 has been deposited in the bank. In addition, the company has written checks for $72,470, of which $71,000 has been processed by the bank. The bank statement reveals an ending balance of $11,800 and includes the following items not yet recorded by Damon: bank service fees of $160, note receivable collected by the bank of $5,100, and interest earned on the account balance plus from the note of $370. After closer inspection, Damon realizes that the bank incorrectly charged the company’s account $340 for an automatic withdrawal that should have been charged to another customer’s account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

Business
1 answer:
bagirrra123 [75]3 years ago
5 0

Answer:

Explanation:

Bank Reconciliation: The bank reconciliation deals with the bank statement balance and the cash statement balance. The motive is to compare these two statements so that the organization can run in the smoothly manner.  

There are various transactions due to which the bank statement balance and the cash statement balance do not match. To match these statements, we adjust the transactions accordingly.  

The outstanding deposits is computed below:

= Company cash receipts - bank deposited

= $74,340 - $71,300

= $3,040

And, the outstanding checks is computed below:

= Company written checks - Processed by bank

= $72,470 - $71,000

= $1,470

The preparation of the  bank reconciliation statement on October 31, 2021 for Damon Company is presented in the spreadsheet. Kindly find the attachment below:

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Which of the following would NOT be classified as a current asset on a classified balance sheet? 答案选项组 Intangible assets Short-t
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Answer:

Intangible assets

Explanation:

A classified balance sheet is a financial statement that classifies the components in the balance sheet into different groups. For example, assets are classified into current or non current asset

Current assets are all the assets that are either used by a company or sold in the course of the year of the company.

Current assets include

  • cash, cash equivalents
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Intangible assets are classified as  noncurrent (long-term) assets

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3 years ago
How is the principle of open opportunity different from guaranteeing success to everyone in the marketplace?
sesenic [268]
The principle of open opportunity in the marketplace means that anyone who wants to put up a business is welcome to do so. However, the success of his business rests entirely on how well it is received in the market.

Guaranteeing success to everyone in the marketplace is impossible. Competition is always present. Demand and supply can be affected by factors beyond human control.
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3 years ago
A company's chart of accounts is: a detailed list of the accounts that make up the five financial statement elements. the set of
polet [3.4K]

Answer:

A detailed list of the accounts that make up the five financial statement elements.

Explanation:

The company's chart of accounts is the listing of all the accounts that the company has included as part of the five financial statement elements during a specific period of time.

The five financial statement elements are: assets, liabilities, equity (part of the balance sheet), expenses and revenues (part of the income statement).

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8 0
3 years ago
Nebraska Inc. issues 4,100 shares of common stock for $131,200. The stock has a stated value of $15 per share. The journal entry
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Answer:

$61,500

Explanation:

Based on the information given if the company

issues 4,100 shares of common stock for the amount of $131,200 in which the stock has a stated value of $15 per share which means that The journal entry to record the stock issuance would include a credit to Common Stock for $61,500 Calculated as:

Credit to Common Stock=4,100 shares*$15 per share

Credit to Common Stock=$61,500

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3 years ago
reported net income of $22,000 for the current year. During the year, Inventory decreased by $7,800, Accounts Payable decreased
Artist 52 [7]

Answer:

$24,800

Explanation:

Indirect method reconciles the Net Income to Operating Cash flow by adjusting for non -cash items previously included in net income and changes in working capital.

Cash flow from Operating Activities

Net income                                                     $22,000

Add Depreciation Expense                            $10,800

Less gain on the sale of equipment was         ($500)

Decrease in Inventory                                      $7,800

Decrease in Accounts Payable                     ($8,400)

Increase in Accounts Receivable                 ($6,900)

net cash provided operating activities        $24,800                                                        

Therefore

The net cash provided (used) by operating activities is $24,800

4 0
3 years ago
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