Answer:
The correct answer is B
Explanation:
Deposit in transit is the term which is defined as the checks and cash which have been collected and reported by an entity in the books, but it is not yet recorded or processed in the records of the bank where the funds are deposited.
So, the item of deposit in transit will cause the cash per bank statement to be smaller than the balance of cash showed in the accounting records because it is that cash which is received by the company and sent to the bank but not yet processed or posted to the bank account by the bank.
Answer:
A.
DR Foreign Currency Transaction loss 1,000
CR Accounts Payable (SFr) $1,000
Explanation:
When the transaction was agreed on September 3, 20X8, the exchange rate was;
$0.85 : 1 franc
Therefore the $17,000 was valued at;
= 17,000/0.85
= 20,000 francs
When the transaction was paid for however, on October 10, the Franc had gained on the dollar by;
= 0.9 - 0.85
= $0.05
This means that the dollar got weaker by $0.05 so the company made a loss of
= 20,000 francs * 0.05
= 1,000 francs
This will be recorded as;
DR Foreign Currency Transaction loss 1,000
CR Accounts Payable (SFr) $1,000
Can you add the options so we can help you?
The answer would be decrease, decrease, rise. Hope this helps! <3
<span>C. Not being able to spend that $100 on some furniture for your house</span>