All categories

2 years ago

The following information pertains to Blossom Company.

Business

1 answer:

KonstantinChe [14]2 years ago

5 0

Answer:

Blossom Company

Bank Reconciliation statement

July 31. Cash balance Per Bank = $6,960

Less: July 31. Adjusted Cash Balance = $6,960

Difference = $0

Explanation:

Bank Reconciliation statement

July 31. Cash balance Per Bank = $6,960

Less: July 31. Adjusted Cash Balance = $6,960

Difference = $0

Preparation of adjusted Cash Book.

July 31. Cash Balance Per Books = $7,040

July 31. Less: Bank charges = -$40

July 31. Less: Deposits in transit = -$2,840

July 31. Add: Electronic funds transfer = $1,600

July 31. Add: Outstanding Checks = $1,200

July 31: Adjusted Cash Balance = $6,960

You might be interested in

Darius is considering buying new bedroom furniture. Naturally, he compares several types of beds, dressers, and bedside tables,

yaroslaw [1]

Answer: The correct answer is "b) the total product offering.".

Explanation: All of the components that Darius is evaluating make up the total product offering.

When evaluating the types of beds, dressers and bedside tables taking into account at the same time their reputation, guarantee and experience of each product according to the brand, it is clearly evaluating the total offer of products as a whole.

6 0

2 years ago

Determine whether each scenario is an example of tax avoidance or tax evasion. Andrea keeps a record of all her business-related

Brums [2.3K]

Answer:

1. Tax avoidance

2.Tax avoidance

3.Tax evasion

Explanation:

Tax avoidance refers to a legal way of reducing one's tax liability through lawful deductions. Ways to reduce tax liabilities are; capitalizing on tax advantage retirement accounts, liasing with tax advisor on the legal way for tax avoidance. Tax avoidance is however legal.

Examples of tax avoidance are;

1. Andrea keeps a record of all her business related expenses.

2. Daniel claims the amount of interest paid for his mortgage as tax deductions.

Tax evasion is a deliberate attempt by a tax payer to avoid payment of tax liability. It is a fraudulent action by a tax payer to wilfully evade tax in an illegal manner. In tax evasion, income is concealed to tax authorities inorder to evade tax payment which is a criminal offence. It is to be noted that tax evasion is illegal in the eye of the law.

Example of tax evasion is ;

3. Christian did not report the tips he earned on his tax return.

7 0

2 years ago

Two firms with identical capital intensity ratios are generating the same amount of sales. However, Firm A is operating at full

Gemiola [76]

Answer:

True

Explanation:

Firm A is operating at full capacity, if its sales keep increasing, then t will need to invest to expand its production capacity. Since firm B is operating below full capacity level, if its sales keep increasing it will have some spare production capacity it can use before operating at full capacity.

Therefore firm A will need to invest in an expansion of its production capacity while firm B can keep operating without new investments.

7 0

2 years ago

Since 2008, Ben has owned all 100 outstanding shares of N and M Corporation’s stock. Ben’s basis for the stock is $50,000. In 20

FromTheMoon [43]

Answer:

A. $75,000 dividend

Explanation:

This is not a capital gain as it do not come from the change in the value of the previously owned shares this are new shares.

The shares which N and M provide in favor to Ben are an stock dividend thus, the tax treatment should be of dividends as well.

6 0

2 years ago

Gray is a 50% partner in Fabco Partnership. Gray's tax basis in Fabco on January 1, year 4, was $5,000. Fabco made no distributi

arsen [322]

Answer:

$21000

Explanation:

To determine Gray’s tax basis for a 50% interest in the Fabco Partnership, The interest is increased by the partner’s distributive share of all partnership items of income and decreased by the partner’s distributive share of all loss and deduction items.

Gray’s beginning basis = $5,000

Gray’s 50% distributive share of ordinary income = 50% × $20000 = $10000

Gray’s 50% tax-exempt income= 50% × $8000 = $4,000 and

portfolio income = 50% × $4000 = $2,000

Therefore, the ending basis of Gray’s Fabco partnership interest = $5000 + $10000 + $4000 + $2000 = $21000

6 0

3 years ago