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stiks02 [169]
3 years ago
9

Owen Company's unadjusted book balance at June 30 is $11,400. The company's bank statement reveals bank service charges of $80.

Two credit memos are included in the bank statement: one for $1,170, which represents a collection that the bank made for Owen, and one for $120, which represents the amount of interest that Owen had earned on its interest-bearing account in June. Based on this information, Owen's true cash balance is:
Business
1 answer:
kipiarov [429]3 years ago
5 0

Answer:

Cash Balance = $12610

Explanation:

We can calculate the adjusted or true cash balance of Owen by making adjustments in the book balance using the transactions that only appear on the bank statement and are missing from the book balance calculation.

1. The bank service charges are a deduction that bank has made from the bank account of Owen. This, they should be deducted from the book balance.

2. A collection of $1170 made by the bank on Owen's behalf will increase the account balance of Owen. Thus, it should be added to the book balance.

3. The interest earned by Owen is also an addition to the bank balance and should be added in the unadjusted book balance.

The new or true cash balance of Owen will be,

Cash Balance = 11400 - 80 + 1170 + 120

Cash Balance = $12610

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Answer:

Ricci vs. DeStefano

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More noticeably, no blacks and a very small number of Hispanics qualified for the promotion.

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6 0
3 years ago
Wildhorse Co. began the year 2022 with retained earnings of $651000. During the year, the company sold additional shares of stoc
Volgvan

Answer:

$1,800,000

Explanation:

Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.

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7 0
3 years ago
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Answer:

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Explanation:

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We simply deduct all expenses ,interest and taxes from the sales revenue so that the net income could come and the same is to be considered

5 0
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8 0
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krek1111 [17]

Answer: True

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