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2 years ago

Flounder Corporation is preparing a bank reconciliation and has identified the following potential reconciling items.

Business

1 answer:

nikklg [1K]2 years ago

5 0

Answer:

Explanation:

The journal entries are shown below:

a. No entry passed

b. Office expense A/c Dr $38

To Cash $38

(Being bank service charges paid)

c. Cash A/c Dr $32

To Interest revenue $32

(Being interest received)

d. No entry passed

e. Accounts receivable A/c Dr $570

To Cash A/c $570

(Being check returned)

The deposit in transit and outstanding checks should not be recorded. So, no entry is passed.

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Why would a bank be more likely to make a loan to someone with a FICO score of 750 rather than someone with a score of 500? a) T

Archy [21]

Answer:

c) The higher the score, the less risk to the lender that the borrower will be past due on their payments

Explanation:

Fair Isaac Corporation scores are used to measure the creditworthiness of a borrower. The higher the credit scores, the higher the chances of the borrower paying back what was borrowed. Credit scores are in ranges. Credit scores below 500 are rated as Poor and indicates that the borrower's chances of returning what was borrowed are very low.

Credit scores between 740-799 are rated as very good and indicate that the borrower would be prompt in the repayment of his loan.

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3 years ago

Read 2 more answers

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $360,000 of factory labor cos

bezimeni [28]

Answer:

The amount of overhead debited to Work in Process Inventory should be: a. $182,00

Explanation:

The Overheads are Applied in the Manufacturing Costs as:

Budgeted Rate × Actual Activity for the Month

At the End of the Period we would need to determined whether this amount of overhead is Over or Under Applied by comparing it to the actual overheads incurred of $180,000 (given)

In our Case, the predetermined overhead rate is 70% of direct labor cost

Thus we need to find the Direct Labor Cost first:

Total Labor Costs $360,000

Less Indirect Labor Costs $100,000

Direct Labor Cost $260,000

Therefore Overheads applied would be determined as:

= $260,000 × 70%

= $182,000

6 0

3 years ago

Read 2 more answers

Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point syste

GarryVolchara [31]

Answer:

Following is the solution for the given problem.

Explanation:

Best order size, EOQ =√2DS/H

EOQ = √2*4700*60/5

EOQ = 336 units.

D = 4700/300 = 15.66.

σ L= √∑σ²

= √3*(5)² = 8.66.

Reorder point, R = D*L+ z σ L

Reorder point, R = 15.66*3 + 1.282*8.66

Reorder point, R = 58 units.

4 0

3 years ago

Michael (single) purchased his home on July 1, 2009. He lived in the home as his principal residence until July 1, 2017 when he

Nadya [2.5K]

Answer:

correct option is C. $250,000

Explanation:

given data

sold the home and gain = $300,000

to find out

amount of the gain allowed to exclude from gross income

solution

we know that Michael owned the property for the 10 years

so here Michael is not allowed to exclude the gain = 10 % that is $30,000

and The maximum gain exclusion permitted = $250000

so here Michael will recognize $50,000 because amount exceed $250,000 for a single taxpayer and exclusion of gain on sales of property tax payer need to own and occupy the property as principle residence for the 2 out of 5 year immediately preceding the sales

so here correct option is C. $250,000

5 0

3 years ago

On March 10, 2019, Dearden, Inc., purchased 11,200 shares of Jaffa stock for $47 per share as a long-term passive investment. De

olasank [31]

Answer:

Dearden, Inc.

Journal Entries to record the transactions:

March 10, 2019:

Debit Investment in Jaffa $526,400

Credit Cash $526,400

To record the purchase of 11,200 shares at $47 per share.

December 31, 2019:

Debit Loss on Investment $22,400

Credit Investment in Jaffa $22,400

To record the loss on investment from $47 to $45 per share.

December 31, 2020:

Debit Investment in Jaffa $33,600

Credit Gain on Investment $33,600

To record the gain on investment from $45 to $48 per share.

December 31, 2021:

Debit Loss on Investment $44,800

Credit Investment in Jaffa $44,800

To record the loss on investment from $48 to $44 per share.

September 12, 2022:

Debit Loss on Investment $22,400

Credit Investment in Jaffa $22,400

To record the loss on investment from $44 to $42 per share.

Debit Cash Account $470,400

Credit Investment in Jaffa $470,400

To record the sale of the investment in Jaffa at $42 per share.

Explanation:

For Dearden, Inc. journal entries are recorded on the acquisition date to record the purchase of the investment in Jaffa. Records are also made every December 31 to record the movements in the share price of the investment. Finally, on the date of disposal, records are also made to record the sale of the investment.

4 0

3 years ago