One-third of the work related to $30,000 cash received in advance this period is performed. What is the

If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company's books for $227, how should t

djverab [1.8K]

Answer:

Add $45 to the book balance.

Explanation:

This is a transposition error which is an example of error of original entry. A transposition error occurs when the figures are posted in the wrong order, while an error original entry occurs when a wrong amount is entered into the right account. This kind of error usually causes discrepancy between the bank balance and the book balance.

To correct this error in the question, we first find the difference between the right amount and the wrong amount as follows:

Difference = Right amount – Wrong amount = $272 - $227 = $45

Therefore, the difference of $45 will be added to the book balance to bring it into an agreement with the bank treatment as follows:

Bank correct treatment = $272

New book treatment = Wrong amount + Difference = $227 + $45 = $272

It can now be seen that both posting are now in agreement after the correction.

4 0

3 years ago

Suppose that the reserve requirement is 10% and that the Federal Reserve purchases $5 billion in bonds from a brokerage firm.Ini

Lyrx [107]

jdvduskaoekejrhdusismrjrisksmejejeka,wmehr

6 0

3 years ago

Read 2 more answers

Paula's Perfumes has a target profit of $4,000 per month. Perfume sells for $15.00 per bottle and variable costs are $13.50 per

aivan3 [116]

Answer:

4,800 bottles

Explanation:

The formula to compute the number of bottles sold is shown below:

= (Fixed cost + target profit) ÷ (Contribution margin per unit)

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $15 - $13.50

= $1.50

So, the number of bottles sold equal to

= ($3,200 + $4,000) ÷ ($1.50)

= 4,800 bottles

6 0

2 years ago

Cody Mountain Sports is an outdoor sporting goods guiding service located in northern Wyoming. Cody Mountain Sports (CMS) primar

saveliy_v [14]

Answer:

Cody Mountain Sports (CMS)

T-accounts:

Cash

Date Account Titles Debit Credit

Mar. 1 Common Stock $100,000

Mar. 1 Prepaid Insurance $1,200

Mar. 4 Service Revenue 20,000

Mar. 19 Vehicle Expenses 1,000

Mar. 22 Accounts Receivable 3,000

Mar. 24 Rent Expense 4,000

Mar. 27 Salaries Payable 1,000

Mar. 31 Cash dividends 2,500

Accounts Receivable

Date Account Titles Debit Credit

Mar. 15 Service Revenue $3,000

Mar. 22 Cash $3,000

Prepaid Insurance

Date Account Titles Debit Credit

Mar. 1 Cash $1,200

Salaries Payable

Date Account Titles Debit Credit

Mar. 18 Salaries Expense $10,000

Mar. 27 Cash $1,000

Common Stock

Date Account Titles Debit Credit

Mar. 1 Cash $100,000

Service Revenue

Date Account Titles Debit Credit

Mar. 4 Cash $20,000

Mar. 15 Accounts Receivable 3,000

Salaries Expense

Date Account Titles Debit Credit

Mar. 18 Salaries Payable $10,000

Vehicle Expense

Date Account Titles Debit Credit

Mar. 19 Cash $1,000

Rent Expense

Date Account Titles Debit Credit

Mar. 24 Cash $4,000

Cash Dividends

Date Account Titles Debit Credit

Mar. 31 Cash $2,500

Explanation:

a) Data and Analysis:

Mar. 1 Cash $100,000 Common Stock $100,000

Mar. 1 Prepaid Insurance $1,200 Cash $1,200

Mar. 4 Cash $20,000 Service Revenue $20,000

Mar. 15 Accounts Receivable $3,000 Service Revenue $3,000

Mar. 18 Salaries Expense $10,000 Salaries Payable $10,000

Mar. 19 Vehicle Expenses $1,000 Cash $1,000

Mar. 22 Cash $3,000 Accounts Receivable $3,000

Mar. 24 Rent Expense $4,000 Cash $4,000

Mar. 27 Salaries Payable $1,000 Cash $1,000

Mar. 31 Cash dividends $2,500 Cash $2,500

6 0

3 years ago

Keller Construction is considering two new investments. Project E calls for the purchase of earthmoving equipment. Project H rep

anastassius [24]

Answer:

USING 0% DISCOUNT RATE

PROJECT E

Year Cashflow [email protected]% PV

$ $

0 (23,000) 1 (23,000)

1 5,000 1 5,000

2 6000 1 6,000

3 7000 1 7,000

4 10,000 1 10,000

NPV 5,000

PROJECT H

Year Cashflow [email protected]% PV

$ $

0 (25,000) 1 (23,000)

1 16,000 1 16,000

2 5,000 1 5,000

3 4,000 1 4,000

NPV 2,000

Project A should be accepted

USING 9% DISCOUNT RATE

Year Cashflow [email protected]% PV

$ $

0 (23,000) 1 (23,000)

1 5,000 0.9174 4,587

2 6000 0.8462 5,077

3 7000 0.7722 5,405

4 10,000 0.7084 7,084

NPV (847)

PROJECT H

Year Cashflow [email protected]% PV

$ $

0 (25,000) 1 (23,000)

1 16,000 0.9714 15,542

2 5,000 0.8462 4,231

3 4,000 0.7722 3,089

NPV (138)

None of the projects should be accepted because they have negative NPV

Explanation:

The question requires the computation of NPV using 0% and 9%.

The cashflows of the two projects will be discounted at 0% and 9%.

The discount factors for each project can be calculated using the formula (1+r)-n. The cashflows of the projects will be multiplied by the discount factors to obtain the present values. NPV is the difference between present values of cash inflows and initial outlay.

7 0

3 years ago