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Korolek [52]
3 years ago
6

Accompanying a bank statement for Borden Company is a credit memo for $21,200 representing the principal ($20,000) and interest

($1,200) on a note that had been collected by the bank. The company had been notified by the bank at the time of the collection but had made no entries. Journalize the entry that should be made by the company to bring the accounting records up to date?
Business
2 answers:
Olenka [21]3 years ago
5 0

Answer:

<em>Bank reconciliation is a statement carried out by a company to know the difference between cash balance per book and cash balance per bank.</em>

<em>A journal is needed by a company to keep day to day updates of records.</em>

Explanation:

<em>Banks prepares statement of account. the Borden company has updates its own records from their end. most times times the balance of cash per bank and per book rarely work well or agree.</em>

<em>Bank reconciliation is a statement that is prepared by a company to know the disagreement and dissimilarity of cash balance per book and cash balance per bank</em>

<em>A record journal entry must be made by the company to  have a good update of their records.</em>

<em>An example of a journal is shown below</em>

<em>Date, Account and explanation, post reference, Debit($), Credit ($)</em>

Lorico [155]3 years ago
5 0

Answer:

The journal entry should be:

Dr Cash                                  21,200

Cr Note Receivable              20,00

Cr Interest Income                1,200

( to record receivable collected by the bank)

Explanation:

The company is collected its interest income generating receivable through the bank, with the principal amount is $20,000 and the interest amount is $1,200.

So, its cash account - an asset account will increase ( Dr) by the total amount collected which is $21,200. The Receivable account - an asset account will decrease (Cr) by $20,000 which is also the principal amount and Interest Income will be recorded $1,200 by crediting the amount into the Interest Income account.

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zavuch27 [327]

Answer:

The answer is: B) The statement is false. A decrease in the price of digital cameras would decrease the demand for non-digital cameras, but a decrease in the price of non-digital cameras would not cause the demand for non-digital cameras to decrease.

Explanation:

Suppose we are not currently living in 2019, instead we are back 12 years to 2007 (before the iPhone). Back then , digital cameras were still used by common "unprofessional" users. Digital cameras were an improvement compared to non-digital cameras, so the price of non-digital cameras were much lower than their digital counterparts.

If the price of digital cameras decreased, then the price of non-digital cameras would decrease also. For example, if luxury car companies like Mercedes Benz started selling sedan cars for $20,000, Ford and Chevrolet would be forced to lower the price of their cars since they wouldn't be able to compete with MB at the same price.

But a decrease in the price of non-digital cameras would never decrease their demand. Something else would have caused that decrease. Probably digital cameras became so cheap that everyone could afford one and since they were so much better than non-digital cameras, people simply stopped buying non-digital cameras.  

8 0
3 years ago
Faith Busby and Jeremy Beatty started the B&amp;B partnership on January 1, Year 1. The business acquired $44,000 cash from Busb
Brums [2.3K]

If Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year. The income statement, capital statement, balance sheet, and statement of cash flows for B&B’s 2016 fiscal year are:

  • Income statement $23,600
  • Capital statement: Busby $51,440, Beatty $77,660
  • Balance sheet : Total Assets $129,100, Total Liabilities and Equity $129,100
  • Statement of cash flows for B&B’s $129,100

a. Income Statement

Income Statement for the year ended December 31, 2016  

Cash Revenues $42,000

Less: Cash Expenses ($18,400)

Net Income $23,600

($42,000-$18,400)

b. Capital statement

Capital Statement for the year ended December 31, 2016  

Busby Beatty

Beginning Capital Balance $44,000 $66,000

Less:- Withdrawal ($2,000) ($2,500)

Add:- Net Income $9,440 $14,160

[$44,000/($44,000+$66,000)×$23,600=$9,440]

[$66,000/($44,000+$66,000)×$23,600=$14,160]

Ending Capital Balance $51,440 $77,660

c. Balance Sheet

Balance Sheet As of December 31, 2016  

Assets  

Cash $129,100

($51,440+$77,660)

Total Assets  $129,100

Liabilities  

Equity  

Busby $51,440

Beatty $77,660  

Total Liabilities and Equity  $129,100

d. Cash Flow Statement

Cash Flow Statement  for the year ended December 31, 2016

Cash Flows from Operating Activities:  

Revenue from Operations      $42,000  

Operating Expenses           ($18,400)  

Net Cash flow from operating activities $23,600

($42,000-$18,400)

Net Cash flow from Investing activities  $0

Cash Flows from Financing Activities  

Proceeds from Partners $110,000

($44,000+$66,000)

Withdrawal by Partners ($4,500)

($2,000+$2,500)

Net cash flow from financing activities $105,500

($110,000-$4,500)

Net cash change   $129,100

($23,600+$0+$105,500)

Opening cash balance  $0

Ending Cash Balance  $129,100

Learn more here:

brainly.com/question/16751431

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True or False (PLEASE ANSWER QUICK)
earnstyle [38]
It’s TRUE I took the test
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What does an effective business begin with?
Vilka [71]

Answer:

trust, rules and schedules, a plan on what your selling, those products

Explanation:

I'm just saying what I think makes an effective business

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Philip is thinking about customizing his motorcycle. A paint job, saddlebags, and a radio would cost $600. His motorcycle is old
laiz [17]

Answer:

C) He will temporarily have less money in his bank account.

Explanation:

Since Philip is going to spend $600 in his motorcycle repairs, he will have less money in his bank account.

We cannot know where he is going to drive his motorcycle or what he is going to do with his free time. If the repairs are done properly then he mght be able to either keep the motorcycle for a little longer or sell it for a higher price. We also don't know what he plans to do.

The only thing certain is that he is going to have less money.

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