Answer:
(a) Bank Reconciliation statement:
Bank's cash balance:
= Per bank statement + Deposits outstanding - Checks outstanding
= $22,346 + $1,725 - $1,300
= $22,771
Therefore, bank balance per reconciliation is $22,771.
Company's cash balance:
= Per general ledger - service fees
= $22,810 - $39
= $22,771
Therefore, company balance per reconciliation is $22,771.
(b) Journal entry to adjust balance for cash is as follows:
Bank service charge expense A/c Dr. $39
To Cash A/c $39
(To record bank service charge)
<u>Answer:</u>
Answer for Part A and Part B is as follows:
Particulars 2016 year 2017 year
Contract Price $13,00,000 $13,00,000
Cost that has been incurred $675000 $950000
Estimated cost to complete $225000 $0
TOTAL COST $900000 $950000
Expected Gross profit $400000 $350000
Percentage that is completed 75 percent 100percent
Gross profit to be recognised $300000 $50000
<u>Note</u>: Calculations have been made according to the data and figures given in the question.
Answer
The answer and procedures of the exercise are attached in a the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
The answer is B. Overstate net income by $38,000.
Explanation:
Accrued expense is an expense that has been enjoyed or incurred but has been paid for. Examples of an accrued expense are unpaid wages/salary, unpaid electricity bill etc.
Usually, the adjusting entry for accrued expense is to debit the expense and debit increases expense while credit decreases it. Since there is no adjusting entry, that means no expense is being recognized on the income statement for this transaction. Hence, the net income increases (overstated). because ordinarily expense reduces net income.
Answer:
The correct answer is letter "D": The relevant time horizon is short.
Explanation:
Time horizon is the length of time you can part with your money before you need it again. If you have a long time horizon, there are more opportunities to make a profit out of an investment but if the time horizon is short there are more possibilities to end up with losses out of an investment. In other words, <em>the longer the time horizon the most likely to profit and the shorter the time horizon the most likely to end with losses</em>.