Answer:
E. It may encourage a sense of entitlement among employees.
Explanation:
Above the market, compensation in the form of wage strategy in which the organizations initiates high salaries to the employees. High salaries are provided to the employees to attract them and to retain them in the team. This is done to maintain the caliber of the group and for the smooth flow among the team members.
That it increases the money supply and the inflation is higher. More money can be loaned out by the bank.
Answer:
A. Interest earned on the depositor's account
B. Deposit in transit and Note collected by the bank for the depositor
Explanation:
In Financial accounting, bank reconciliation can be defined as an evaluation which give a complete details of the financial items responsible for any difference between the balance of the cash account in the balance sheet and the cash balance reported in an entity's bank statement. These reconciliations should be done at regular intervals so as to ensure a balanced record of the cash account are kept by an organization or firm.
Adjusted balance ends the bank section of a bank reconciliation. Thus, in the event of any fraudulent behavior by an employee, the bank reconciliation would detect any anomaly or financial fraud in the organization.
In a nutshell, after a reconciliation of the bank statement, the adjusted bank balance should be equal to the company's ending adjusted cash balance on the balance sheet.
The items that would be added to the book balance on a bank reconciliation include the following;
A. Interest earned on the depositor's account.
B. Deposit in transit and Note collected by the bank for the depositor.
Answer:
The account is debited on December 31, 2020: Interest expense by the entry:
Debit Interest expense $24,000
Credit Interest Payable $24,000
Explanation:
Slack Inc. borrowed $400,000 on July 1, 2020. The note requires interest at 12%.
The amount of interest Slack Inc. pays per year = $400,000 x 12% = $48,000
On December 31, 2020, the company has borrowed $400,000 for 6 months. Following the Accrual basis, Slack Inc. would report on December 31, 2020 the interest expense for 6 months:
$48,000/12 x 6 = $24,000
The adjustment entry:
Debit Interest expense $24,000
Credit Interest Payable $24,000
