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Karo-lina-s [1.5K]
2 years ago
5

The following information pertains to Sheridan Company.

Business
1 answer:
DanielleElmas [232]2 years ago
5 0

Answer:

Adjusted Cash Balance at 31 August 2022 = 9654

Explanation:

Bank Reconciliation Statement at August 31, 2022

Cash Balance as per Bank  August 31,                                         $7338

Add: Deposit in Transit                                                                  $3010

<u>Deduct: Outstanding Checks                                                        ($694 )</u>

<u>Adjusted Cash Balance                                                                  $9,654</u>

<u />

Cash Balance as per books, August 31,                                        $7374

Add: Receivable collected by bank                                               $2326

<u>Less:Bank Service Charges                                                           ($46)     </u>

<u>Adjusted Cash Balance                                                                  $9,654 </u>

<u />

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What is the present value of $6,811 to be received in one year if the discount rate is 6.5 percent?
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The present value of of $6,811 to be received in one year if the discount rate is 6.5 percent  will be $6, 395.31.

What does Present Value mean?

A financial concept that calculates the current value of a future sum of money or stream of cash flows is present value. It's used to compare the relative worth of different amounts of money that aren't available at the same time. The inverse of future value. The sum of future investment returns discounted at a specified rate of return is calculated as the present value of money you expect from future income.

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The procedure to find an present value:

Present Value = FV/ (1+i)^n

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6, 395.31

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