Answer:
Please see solution below
Explanation:
Bank reconciliation as at June 31st.
•Bank statement balance
$25,800
Add:
Bank service charges
$100
NSF check
$600
Wrong drawn
$400
Total
$1,100
Adjusted bank balance
$26,900
Bank reconciliation as at June 31st.
•Cash book balance
$27,500
Add: outstanding checks
$5,600
Balance
$34,100
Less: deposit in transit
($6,200)
Adjusted book balance
$26,900
Answer:
appreciates and buys more Chinese goods
Explanation:
Nominal exchange rate is the rate at which one unit of currency can be exchanged for another unit of currency.
If exchange rate is 1 dollar for 6 Chinese yuan , it means that 1 dollar would buy 6 Chinese yuan.
If exchange rate now becomes 1 dollar for 7 Chinese yuan , it means that 1 dollar would buy 7 Chinese yuan.
One dollar is now buying more Chinese yaun (7>6). It means that the dollar has appreciated and the Yaun has depreciated.
Currency appreciation is when the a currency increases in value.
As a result the dollar would buy more Chinese goods.
I hope my answer helps you
Answer:
The correct answer is C
Explanation:
The insurance policy was purchased on Dec 1 worth $3,600, so on Dec 31, the entry to be recorded is as follows:
Insurance expense A/c............................Dr $300
Prepaid insurance A/c.........................Cr $300
When the asset is charged on to the expense account then the expense account of the insurance is debited against the account of the prepaid insurance.
Working Note:
Amount = Insurance amount / Number of months
= $3,600 / 12
=$300
Answer:
Because fixed costs will not change, the overall effect on the company's monthly net operating income will be equal to the contribution margin of the product once the new component is added.
Explanation:
The contribution margin is equal to: Revenue - Variable Costs.
We already know that the variable cost will be increased by $50 once new component is added, and that monthly sales are expected to increase by 500 units after that.
Depending on the price of the product, the amount sold, and the variable costs, we get the contribution margin, and this contribution margin will be exactly the same as the overall effect on the net operating income.
