1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
posledela
3 years ago
6

The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $12,350. The bank statement indicated a balance of $

15,930 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
Checks outstanding totaled $17,865.

A deposit of $9,150, representing receipts of July 31, had been made too late to appear on the bank statement.

The bank had collected $6,095 on a note left for collection. The face of the note was $5,750.

A check for $390 returned with the statement had been incorrectly recorded by Stone Systems as $930. The check was for the payment of an obligation to Holland Co. for the purchase of office supplies on account.

A check drawn for $1,810 had been incorrectly charged by the bank as $1,180.

Bank service charges for July amounted to $80.

Required:

1. Prepare a bank reconciliation.

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash.

3. If a balance sheet were prepared for Stone Systems on July 31, 20Y5, what amount should be reported as cash?
Business
1 answer:
Luba_88 [7]3 years ago
7 0

Answer:

1.

Balance at bank as per cash book                            $12,810

Add Unpresented Checks                                          $17,865

Less Lodgements not yet credited                           ( $9,150)

Balance as per Bank Statement                                 $21,525

<em>The bank has to make corrections of the error it has made - a note should be sent</em>

2.

J1

Cash  $540 (debit)

Holland Co $540 (credit)

J2

Bank Charges $80 (debit)

Cash $80 (credit)

3. Cash Balance = $12,810

Explanation:

<em>Step 1 First Bring the Cash Balance in the Cash Book Up to Date by doing the following :</em>

Debit :

Balance as per Cash Book as at July 31, 20Y5       $12,350

Over stated Check - Holland Co 930-390                   $540

Totals                                                                         $ 12,890

Credit:

Bank service charges                                                     $80

Updated Cash Book - Cash Balance                        $12,810

Totals                                                                         $ 12,890

<em>Step 2 Prepare the Bank Reconciliation Statement as follows</em>

Balance at bank as per cash book                            $12,810

Add Unpresented Checks                                          $17,865

Less Lodgements not yet credited                           ( $9,150)

Balance as per Bank Statement                                 $21,525

<em>The bank has to make corrections of the error it has made - a note should be sent</em>

J1

Cash  $540 (debit)

Holland Co $540 (credit)

J2

Bank Charges $80 (debit)

Cash $80 (credit)

<em />

You might be interested in
McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Varia
torisob [31]

Answer:

1,350 units

Explanation:

The computation of the break-even point in composite units is shown below;

Composition contribution margin per unit is

= ($75 - $35) × 5  + ($95 - $40) × 2

= 310

Now break-even point in composite units is

= Fixed cost ÷ Composition contribution margin per unit

= $418,500 ÷ 310

= 1,350 units

8 0
3 years ago
On January 1, Year 1, Bell Corp. issued $340,000 of 10-year, 8 percent bonds at their face amount. Interest is payable on Decemb
Free_Kalibri [48]

Answer and Explanation:

The journal entries are shown below:

On Jan 1

Cash $340,000

     Bonds payable  $340,00

(Being the bond payable is issued for cash)

For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities  

On Dec 31

Interest expense ($340,000 × 8%) $27,200

       To  Cash  $27,200

(Being the interest expense for year 1 is recorded)

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets  

On Dec 31

Interest expense  ($340,000 × 8%) $27,200

    To Cash  $27,200

(Being the interest expense for year 1 is recorded)  

For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets  

7 0
3 years ago
Burke tires just paid a dividend of $2.42. analysts expect the company's dividend to grow by 30% this year, 20% next year (year
Ivanshal [37]

Answer:

There is no correct answer is these options. But the correct answer is $113.41

Explanation:

The formula to solve this is:

Po = D1/r - g

Po is the Current price of the common stock

D1 is the future dividend payment

r is the rate of return

g is the growth rate.

This is quite different from the usual(single stage). This is Two-stage Dividend Discount Model. To solve this;

D1(Dividend in year 1) is $3.15( $2.42 x 1.3)

D2(Dividend in year 2) is $3.78(3.15 x 1.2)

D3(Dividend in year 3) is $4.15($3.78 x 1.1)

D in subsequent years is $4.36(4.15 x 1.05)

P3(price of stock in year 3) = $4.36/0.083 - 0.05

=$132.12

Now the stock's current market value is

$3.15/1.08 + $3.78/1.08^2 + $4.15/1.08^3 + $132.12^3

The price of the stock is $113.41

4 0
3 years ago
Bateman Corporation sold an office building that it used in its business for $800,200. Bateman bought the building 10 years ago
GarryVolchara [31]

Answer:

Gain= $400,600

Explanation:

<u>First, we need to calculate the book value of the building:</u>

Book value= purchase price - accumulated depreciation

Book value= 599,900 - 200,300

Book value= $399,600

<u>If the selling price is higher than the book value, the company gain from the sale.</u>

Gain/loss= selling price - book value

Gain/loss= 800,200 - 399,600

Gain= $400,600

4 0
3 years ago
__________ is a growing tool for managers to enhance communication and collaboration in support of empowered or bossless work en
Dafna11 [192]

Answer:

The correct approach will be "Social media ".

Explanation:

  • Social media become web-based communication platforms that always allow the individual to communicate with one another through intelligence sharing as well as consumption.
  • It is an internet-connected communication method whereby the participants build virtual forums to exchange knowledge, ideas, private correspondence, and certain other functionality.
3 0
3 years ago
Other questions:
  • Which step of selling includes cold-calling?
    10·2 answers
  • which ICS functional area sets the incident objectives ,strategies and priorities and has overall responsibility for the inciden
    15·2 answers
  • Unlike a product/service differentiation competitive strategy, a niche strategy:
    14·1 answer
  • A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's cur
    15·1 answer
  • When the price of milk goes up, demand does not fall significantly, because people still need to buy milk. However, if the price
    11·1 answer
  • What private and federal help can you receive as a consumer?
    14·1 answer
  • 39. Dan is working with a private employment agency to find a job. He signs an agreement to pay $350 to the
    13·1 answer
  • Cadmia and Rhodia specialize in the production of electronics and pharmaceutical products respectively. They are considered the
    11·1 answer
  • Embryological studies suggest that the most ancient chordates were related to the ancestors of: a. birds b. dinosaurs c. mollusk
    7·1 answer
  • One of the main factors when determining which companies to buy policies from is whether or not the company is _____ strong.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!