Answer:
1-May
Dr Petty cash 350
Cr Cash 350
15-May
Dr Janitorial services 109.20
Dr Miscellaneous 89.15
Dr Postage expense 60.90
Dr Advertisement expense 80.01
Cr Cash over and short 16.1
Cr Cash 323.16
16-May
Dr Petty cash 200
Cr Cash 200
31-May
Dr Postage expense 47.05
Dr Mileage expense 38.5
Dr Delivery expense 48.58
Cr Cash 134.13
31-May
Dr Cash 50
Cr Petty cash 50
Explanation:
Kiona Co Journal entries
1-May
Dr Petty cash 350
Cr Cash 350
15-May
Dr Janitorial services 109.20
Dr Miscellaneous 89.15
Dr Postage expense 60.90
Dr Advertisment expense 80.01
Cr Cash over and short 16.1
Cr Cash 323.16
(350-26.84)
16-May
Dr Petty cash 200
Cr Cash 200
31-May
Dr Postage expense 47.05
Dr Mileage expense 38.5
Dr Delivery expense 48.58
Cr Cash 134.13
31-May
Dr Cash 50
Cr Petty cash 50
Answer:
The true cash balance was $6,140
Explanation:
The computation of the true cash balance of the bank statement is shown below:
= Bank balance + deposit in transit + bank error - outstanding checks
= $8,900 + $3,750 + $610 - $7,120
= $6,140
The other information which is given in the question i.e NSF checks, banks ervice charge is for adjusting the cash balance. Hence, we do not consider it
Answer:
$54,000 cost basis in ABC; $6,000 cost basis in DEF
Explanation:
The original cost basis is the price that was paid for the shares. This means that 1,000 shares at $60 each gives a cost basis of $60,000.
Now if the subsidiary DEF is worth 10% of ABC which has a cost basis of $60,000, then the share of DEF that customers will have will be 10% of $60,000.
(10÷100) x $60,000 = 0.1 x $60,000
= $6,000.
Now, if DEF is worth $6,000 (i.e 10%) of ABC, then ABC's worth will now be $60,000 - $6,000 = $54,000.
The original cost basis is that price that was paid for the shared initially. This means that it has no effect on the increase in value of the shares.
Cheers.