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
antiseptic1488 [7]
3 years ago
8

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227, how should t

his error be treated on the bank reconciliation?
Business
1 answer:
djverab [1.8K]3 years ago
4 0

Answer:

Add $45 to the book balance.

Explanation:

This is a transposition error which is an example of error of original entry. A transposition error occurs when the figures are posted in the wrong order, while an error original entry occurs when a wrong amount is entered into the right account. This kind of error usually causes discrepancy between the bank balance and the book balance.

To correct this error in the question, we first find the difference between the right amount and the wrong amount as follows:

Difference = Right amount – Wrong amount = $272 - $227 = $45

Therefore, the difference of $45 will be added to the book balance to bring it into an agreement with the bank treatment as follows:

Bank correct treatment = $272

New book treatment = Wrong amount + Difference = $227 + $45 = $272  

It can now be seen that both posting are now in agreement after the correction.

You might be interested in
DAA's stock is selling for $15 per share. The firm's income, assets, and stock price have been growing at an annual 15 percent r
DaniilM [7]

Answer:

This question is incomplete since the required return is not pasted here. I checked on the web and found similar question with the firm's required rate of return is 18 percent. You can use this to solve the question as follows.

Explanation:

Use Dividend Discount Model (DDM) to find the intrinsic value of the stock.

Find the present value of dividends

D3 = 2

PV(of D3) = 2/(1.18^3) = 1.2173

D4 = D3(1+g) = 2(1+0.06) = 2.12

PV(of D4) = \frac{\frac{2.12}{0.18-0.06} }{1.18^{3} }

PV (of D4) = 17.6667/ 1.6430 = 10.7527

Next, sum up the present values ;

= 1.2173 + 10.7527

= $11.97

Therefore, DAA's stock is currently overpriced ,so you should not buy it since it is only valued at $11.97 and not $15.

6 0
3 years ago
What is a special event that is for people outside a company, such as customers, potential customers, and the
Alla [95]

Answer:

C.

Explanation:

The external events are those events organized for the customers, potential customers, the general public, or other companies outside of the client's business. These events give a chance to the company to showcase its values, beliefs, and morals upon which the company stands.

The external events include charity events, fundraisers, etc. These events paves a way for the business to establish new partnerships with other companies or local businesses.

Therefore, option C is correct.

7 0
3 years ago
Which of the following statements is true? Multiple Choice
ser-zykov [4K]

Answer: Option D

Explanation: Accounting profit is always equals to or greater than the economic profit of an entity. This is due to the fact that, while computing accounting profit the accountant do no take implicit cost into consideration.

Whereas, economic profit is the amount of profit remaining after deducting both explicit and implicit cost.

Implicit cost refers to the cost of loosing profits by choosing one alternative over other.

5 0
3 years ago
The total manufacturing cost variance consists of a.direct materials cost variance, direct labor rate variance, and factory over
Lostsunrise [7]

Answer: The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. (Option C).

Explanation:

Some of the goals of manufacturing companies are to increase company’s revenue and profit. To achieve this, a company needs to know how to manage its costs and these may cause variances in manufacturing.

The total manufacturing cost variance is made up of direct material cost variance, direct labor cost variance and factory overhead cost variance. These costs are the differences between the actual cost incurred and the set cost. These variances help managers to know if the company is meeting up to the required standard.

7 0
3 years ago
Your bank gives you 50 points for monthly online bill pay, 50 points for monthly mobile deposits, 100 points per car payment, an
ololo11 [35]

Answer: Last month earning = $17.25

Explanation:

8 0
3 years ago
Other questions:
  • Adam elects the accrual method of accounting for his business.
    15·1 answer
  • What term is used to describe the process of restricting access to certain material on the web?
    10·1 answer
  • In 2009 and 2010 Toyota had to recall millions of automobiles due to uncontrollable acceleration. This recall forced upper-level
    7·1 answer
  • Period costs include
    14·1 answer
  • Following a technological decline—for example, a decrease in the speed with which robots can attach bolts to cars—there is a the
    10·1 answer
  • Royal Caribbean Cruise Lines contracts with ______ to manage the large movement of food, beverages, raw ingredients, and supplie
    11·1 answer
  • Borrowers who believe they will be in a home for only a short period of time would be good prospects for a/an:
    8·1 answer
  • As reported by the Bureau of Labor Statistics, the CPI for Airfare in 2263 was 586.1 (using a base year of 1914 = 100). The CPI
    5·1 answer
  • The balance sheet of Indian River Electronics Corporation as of December 31, 2020, included 11.75% bonds having a face amount of
    9·1 answer
  • 3. A U.S. MNC needs to raise capital of $100 million by issuing bonds. The firm can either raise US$ at 5% interest rate or issu
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!