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Makovka662 [10]
3 years ago
10

If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30, in preparing the

September 30 bank reconciliation, the company should: Deduct the deposit from the bank statement balance. Send the bank a debit memorandum. Deduct the deposit from the September 30 book balance and add it to the October 1 book balance. Add the deposit to the book balance of cash. Add the deposit to the bank statement balance.
Business
1 answer:
jasenka [17]3 years ago
4 0

Answer:

Add the deposit to the bank statement balance.

Explanation:

This is a temporary difference, the bank balance will be adjusted in the bank reconciliation to get the adjusted bank statment.

The deposit is an increase of cash, it will not be deducted. The bank will acknowledge the deposit in 48 or 72 hours so there is no need to send any memo.

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Cobe Company has already manufactured 19,000 units of Product A at a cost of $25 per unit. The 19,000 units can be sold at this
Dmitriy789 [7]

Answer:

Incremental net income from further processing is  $566,600

Explanation:

First of all, it would be necessary to compute profit from selling the product at cut off point and profit when it is further processed in order to determine whether or not it is worth processing further:

Sales revenue                                        $400,000

cost of production(19,000*$25)            $475,000

Loss from selling                                  ($75,000)

Further processing:

sales revenue

Product B(5200*$108)                       $561,600

Product C(11,000*$55)                       $605,000

Total revenue                                     $1,166,600

total cost

cost of production                              ($475,000)

cost of further processing                 ($200,000)

total costs                                           ($675,000)

Profit                                                    $491600

By further processing the incremental net profit is $566,600 ($491,600-(-$75000)

4 0
3 years ago
Your company rents computers to local businesses and schools. You have 4,000 computers with a book value of $185,000. As a resul
andriy [413]

Answer:

47,000

Explanation:

Impairment Loss = Book Value − Fair Value

$180,500 − $133,500 = $47,000

6 0
3 years ago
Suppose that preferences over private consumption C and public goods G are such that these two goods are perfect substitutes, th
Temka [501]

Answer:

Please see explanation below.

Explanation:

Public goods are goods consumed collectively, they are provided for all members of a community,

no one can be excluded from their consumption. The consumption by one person does not decrease the consumption possibilities for others. Public goods are available for everybody without paying, and these goods cannot be rationed: they are either provided for the whole community, or for no one. Examples of public goods include the public lighting system, public roads, radio broadcasts, national defence, lighthouses, town pavements, etc.

Private goods, on the other hand, are goods consumed individually, and if a unit has been consumed by

someone, then no one else can also consume the same unit. Private goods are scarcely available, and consuming a unit will decrease the amount available for further consumption. Therefore consumers compete for private goods, i.e. private goods are rival in consumption. Consumers can consume them if they pay the price, non-payers are excluded from consumption.

In the first scenario, given that both the private good and public good are perfect substitutes, the optimum quantity produced by the government is at the point where marginal social cost is equal to the marginal social benefit. This optimum output is lower than that of the private firm because the price of public good is higher than price of private good (since marginal social cost > marginal private cost).

If b increases, that means consumers are willing to give up more units of public goods for one unit of the private good. Therefore, the quantity produced by the government will reduce.

For the second part of the question: C = aG, where a > 0.

This implies that equal or more units of the private good is consumed with a particular units of public good. The optimum output still remain at the point where marginal social cost is equal to marginal social benefit but this output level is lower than if the two goods were to be perfect substitutes.

7 0
3 years ago
Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's
forsale [732]

Answer:

Comet's E&P will decrease by $50,000 due to the exchange.

Explanation:

50 of Pam's shares are worth 50 x $1,000 = $50,000, since the corporation is redeeming them, it will do so by decreasing its earnings and profits (retained earnings account).

Generally when larger corporations buy back stocks (AKA treasury stocks), they will credit cash and debit treasury stocks, but since Pam's stocks are being retired, they are not going to be held as treasury stocks, therefore E&P must decrease.

6 0
3 years ago
Change Corporation expects an EBIT of $57,000 every year forever. The company currently has no debt, and its cost of equity is 1
Deffense [45]

Answer:

a) $337,615.38

b-1) $360,910.85

b-2) $415,266.92

c-1) $362,637.36

c-2) $438,461.54

Explanation:

a) To find the current value of the company, we have:

\frac{57,000*(1 - 0.23)}{0.13}

= \frac{57,000*0.77}{0.13}

= $337,615.38

b-1) If the company takes on debt equal to 30 percent of its unlevered value.

337,615.38 + (0.23 * 337,615.38 * 0.30)

= $360,910.85

b-2) When the company can borrow at 10 percent. The value of the firm if the company takes on debt equal to 100 percent of its unlevered value will be:

337,615.38 + (0.23 * 337,615.38 * 1)

= $415,266.92

c-1) The value of the firm if the company takes on debt equal to 30 percent of its levered value:

\frac{337,615.38} {(1 - 0.23) * 0.30}

= $362,637.36

c-2) The value of the firm if the company takes on debt equal to 100 percent of its levered value:

\frac{337,615.38} {(1 - 0.23) * 0.1}

= $438,461.54

5 0
3 years ago
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