Verizon Wireless has just announced a 2-for-1 stock split, effective immediately. Prior to the split, Verizon Wireless had a mar
1 answer:
You might be interested in
Answer:
Harrison company
Step 1.
Preparation of adjusted Cash Book
Balance as at July 31, 2016 = $40,293
Add: bal. of Deposit by credit customer = ($3,100 - $310) = $2,790
Deduct: Bank Service charge = -$30
Deduct: NSF checks = -$1,750
Deduct: loan repayment plus interest = -$3,870
Adjusted Balance =$37,433
Step 2. Bank reconciliation statement
As at 31st July 2016
Balance as per Bank Statement = $38,293
Deduct: uncleared Cheques = -$8,530
Add: Deposits outstanding = $7,400
Add: over disbursement by bank due for recovery = $270
Adjusted Bank Statement = $37,433
Compared to Adjusted Cash Book = $37,433
Difference = $0.
Step 3.
Journal entries required
Debit Cash Account with $2,790
Credit Account Receivables with $2,790
(Under recorded Customer deposit on sales)
Debit NSF expense = $1,750
Debit Loan Account with $2,900
Debit interest on Loan Account with $970
Debit Bank Charges expense a account with $30
Credit Cash Account with $5,650
(Direct debits to bank account on sundry transactions)
Explanation:
A bank reconciliation statement is presented to reconcile a 3rd party (Bank) statement of our Account and the Account maintained by the business in house.
The objective of the Bank reconciliation statement includes:
1. Identify the missing entries in either records
2. Flag the corrections the Bank needs to do to bring our balance to a correct state
3. Pass Journals to capture entries we have missed out or captured incorrectly
4. Identify unassigned entries for investigation
Answer:
$444.42
Explanation:
For computing the saving amount, first need to calculate the economic order quantity, total cost etc
The economic order quantity is
where,
Annual demand is
= 774 packaging crates × 12 months
= 9,932 crates
And, the carrying cost is
= $12 × 34%
= $4.08
= 363.37 crates
Now the total cost is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,288 ÷ 363 × $29 + 363 ÷ 2 × $4.08
= $742.02 + $740.52
= $1,482.54
Now the total cost in case of 774 packing crates is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,288 ÷ 774 × $29 + 774 ÷ 2 × $4.08
= $348 + $1,578.96
= $1,926.96
So, the annual saving cost is
= $1,926.96 - $1,482.54
= $444.42