Answer:
See explanation for all the requirements.
Explanation:
Requirement A
Mathers Co.
Bank Reconciliation
July 31
Cash balance according to bank statement $
24,000
Add: deposit in transit $3,680
Deduct: outstanding checks <u> (4,590)</u>
Adjusted balance $23,090
Cash balance according to company's records $22,600
Add: Error in records payments (710-170) $540
Less: Bank charge <u> ($50)</u>
Adjusted balance $23,090
Requirement B and C
B. If the balance sheet is prepared for Mathers Co. on July 31, $23,090 should be reported for cash.
C. It is a necessary procedure for a bank and an individual or an organization to adjust the bank balance and book balance to avoid any kind of errors. Therefore, reconciliation is always significant. A bank must always do a reconciliation.
Answer:
C) Debit Expenditures $90,000; Credit Other Financing Sources $90,000
Explanation:
A General fund can be defined as the primary fund which are often used by a government entity and they are used to help record all inflows and outflows of resources that are not associated with funds which are for special purpose.
Therefore ,the entry in the General Fund at the date of acquisition will be :
Debit Expenditures $90,000
Credit Other Financing Sources $90,000
Reason been that the acquisition of the new school bus was been financed by signing a note for $90,000 in which the $90,000 is an expenditure which was debited while Other Financing Sources of $90,000 was been credited.
Answer:
Consider the following calculation
Explanation:
Yield to maturity is not given here. So we assume that Yield to maturity is 10%.
Present value of interest payment :
PV = A*PVIFA (n= 40,i =10%)
= 170*9.7791
= 1662.45
Present value of principal payment at maturity
PV = FV*PVIF (n= 40,i =10%)
= 1000 * .0221
= 22.10
Current price of bond = 1662.45+22.10
= $ 1684.55
