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4 years ago

Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information:

Business

1 answer:

V125BC [204]4 years ago

3 0

Answer:

bank account reconciliation:

bank account balance $5,796

- outstanding checks $330

+ deposits in transit $424

+ error from Shirt, Inc., check $340

reconciled balance $6,230

cash account reconciliation:

cash account balance $6,026

+ note collected $410

- bank fee $34

- NSF check $172

reconciled balance $6,230

assets = liabilities + equity

cash acc. rec. notes rec. int. rec.

204 172 -382 -28 = 0 + -34

income statement

revenues - expenses = net income

0 - 34 = -34

All the adjustments are considered cash flows from operations.

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Bramble Corp. factors $3250000 of its accounts receivables without recourse for a finance charge of 4%. The finance company reta

My name is Ann [436]

Answer: $3,672,500

Explanation:

Based on the information given in the question, the debit to cash in the journal entry to record this transaction will be:

= $3,250,000 - ($3,250,000 × 4%) + ($3,250,000 × 9%)

= $3,250,000 - $130,000 + $292,500

= $3,672,500

Therefore, the debit to cash will be $3,672,500.

7 0

3 years ago

2/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Co

Artyom0805 [142]

Answer:

$395,000

Explanation:

Bad Debt expense:

= 1.5% of sales will be uncollectible

= 1.5% × $1,000,000

= 0.015 × $1,000,000

= $15,000

Allowance for Doubtful accounts:

= Bad Debt expense - accounts receivable written off

= $15,000 - $10,000

= $5,000

Net realizable value:

= Accounts receivable - Allowance for Doubtful accounts

= $400,000 - $5,000

= $395,000

6 0

3 years ago

If inflation in the United States is lower than inflation in other countries, then U.S. exports ________ and U.S. imports ___

zepelin [54]

Answer:

A. increase; decrease; increase

Explanation:

If the inflation of United States is lower than in other countries, it means that the price level of United States products are relatively lower than price of products in other countries. So that, the foreign consumers want to buy U.S products more, leading to the increase in U.S. export.

Similarly, as the price of products in other countries are higher than that in the U.S., so that the U.S. residents want to buy domestic products more, reducing the imports of products from other countries, leading to the decrease in the U.S. import.

As the Net export = Export ↑- Imports↓

=> The Net export of US would increase

8 0

3 years ago

Classify each of the following costs as relevant or irrelevant to the decision at hand and briefly explain your reason. a. The p

jasenka [17]

Answer:

a. The purchase price of the old computer when replacing it with a new computer with improved features - Irrelevant cost

Sunk costs are considered irrelevant and the price of the old computer is a sunk cost as it has already been incurred.

b. The cost of renovations when deciding whether to build a new office building or to renovate the existing office building - Relevant

The cost of renovations will help the company decide which alternative is cheaper between building a new office or renovating.

c. The original cost of the current stove when selecting a new, more efficient stove for a restaurant. - Irrelevant

Like the first, this is a sunk cost so it is irrelevant.

d. Local tax incentives when selecting the location of a new office complex for a company’s headquarters. - Relevant

Local tax incentives could reduce cost of operation so is relevant when choosing headquarter location.

e. The fair market value (trade-in value) of the existing forklift when deciding whether to replace it with a new, more efficient model. - Relevant

The existing machine can be traded in for part of the cost of a new one using its market value to reduce the cost of the new one. It is relevant.

f. Fuel economy when purchasing new trucks for the delivery fleet. - Relevant.

Higher fuel economy can reduce cost of transportation so is a relevant cost.

g. The cost of production when determining whether to continue to manufacture the screen for a smartphone or to purchase it from an outside supplier. - Relevant.

This is a relevant cost because the it will help the company decide the cheaper alternative.

h. The cost of land when determining where to build a new call center. - Relevant.

Some land will be in areas that will have higher real estate prices. Your preferred cost of land will help determine which areas to look for locations in.

i. The average cost of vehicle operation when purchasing a new delivery van. - Relevant.

If this cost is too high it will increase expenses. It is a relevant cost to note for cost maximisation.

j. Real estate property tax rates when selecting the location for a new order processing center. - Relevant

Real estate taxes need to be known so that cost estimation can be made on the order processing center.

6 0

3 years ago

The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sale

nirvana33 [79]

Solution and Explanation:

calculating the increase in the net operating income is as follows:

S.no Particulars and explanation Amount

1. Sales ( $268000 + 84000 ) 352000

2. Contribution ( 1 multiply with 40 percent) 140000

3. Fied expense ( $119200 plus $6200 ) 125400

4. Net operating income ( 2 step minus 3 step) $14600

therefore, net operating income increased by $ 14600 plus $12000

Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.

3 0

3 years ago