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2 years ago

The following information pertains to Blossom Company.

Business

1 answer:

Dimas [21]2 years ago

4 0

Answer:

A. Adjusted cash balance per bank $13,545

Adjusted cash balance per books $13,545

B. July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

July 31

Dr Bank service charge $63

Cr Cash $63

Explanation:

A. Preparation of a bank reconciliation at July 31, 2010

PHAROAH COMPANY

Bank Reconciliation

31-Jul-10

Cash Balance per bank statement $10,962

Add: Deposit in transit $4,473

$15,435

Less: Outstanding checks $1,890

Adjusted cash balance per bank $13,545

Cash balance per books $11,088

Add: Electronic fund transfer received $2,520

$13,608

less; Bank service charge $63

Adjusted cash balance per books $13,545

B. Preparation of the adjusting entries at July 31 on the books of Sunland Company.

July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

(To record electronic fund transfer received by bank)

July 31

Dr Bank service charge $63

Cr Cash $63

(To record bank service charges )

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Answer:

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Explanation:

Given Activity costs and activity drivers

Activity Overhead Cost Driver Activity

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Under activity based costing the rates are based on the nature of activity and the rates are based on number of those activities per driver. As for ordering and receiving there are total of 500 orders and total cost = $150,000 that is cost per order will be computed.

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3 years ago

Alpha's preferred stock currently has a market price equal to $80 per share. If the dividend paid on this stock is $6 per share,

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Answer:

r = 0.075 or 7.5%

Option a is the correct answer.

Explanation:

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r = Dividend / Market Price

r = 6 / 80

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3 years ago

The Acme Corporation has been acquired by the Conglomerate Corporation. To help finance the takeover, Conglomerate is going to l

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Answer:

The one-year liquidity index for these securities is 0.862

Explanation:

For computing the liquidity index, we have to use the formula which is shown below:

= (IBM stock face value ÷ total amount of face value) × (IBM current liquidation value ÷ IBM one year liquidation value) + (GE stock face value ÷ total amount of face value) × (GE current liquidation value ÷ GE one year liquidation value) + (Treasury securities stock face value ÷ total amount of face value) × (Treasury securities current liquidation value ÷ Treasury securities one year liquidation value)

where,

total amount of face value = IBM stock face value + GE stock face value + Treasury securities face value

= $15,000 + $6,000 + $20,000

= $41,000

Now put these values to the above formula

= ($15,000 ÷ $41,000) × ($14,900 ÷ $15,500) + ($6,000 ÷ $41,000) × ($3,000 ÷ $3,400) + ($20,000 ÷ $41,000) × ($15,000 ÷ $19,000)

= 0.365 × 0.961 + 0.146 × 0.882 + 0.487 × 0.789

= 0.350 + 0.128 + 0.384

= 0.862

Hence, the one-year liquidity index for these securities is 0.862

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3 years ago

Northrup-Grumman Corporation is expected to pay $1.25 per share for its next dividend. If shares are trading at $27.22 and analy

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Answer:

the return on common shares is 6.99%

Explanation:

The computation of the return on common shares is shown below:

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= $1.25 ÷ $27.22 + 2.4%

= 6.99%

hence, the return on common shares is 6.99%

We simply applied the above formula so that the correct value could come

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2 years ago

An investor contributes $10,000 to a limited partnership and signs a $40,000 recourse note. In the first year, the investor's di

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Answer: The loss carried to the next year is $10,000

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Therefore total sum basis = $50,000 initial investment + $15,000 income = $65,000

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hence,

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since the loss = $70,000

therefore,

the remaining loss after the first year = $70,000 - $60,000 = $10,000

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3 years ago