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spin [16.1K]
4 years ago
9

Jimmy Company’s cash balance at the end of the month was $8,500. After comparing the company’s records with the monthly bank sta

tement, Carla’s accountant identified the following reconciling items: outstanding checks, $800; deposits in transit, $700; bank service charge, $30; NSF check, $500. What is the adjusted cash balance?
A) $6,600
B) $6,370
C) $7,970
D) The adjusted cash balance cannot be determined from this information.
Business
1 answer:
Elodia [21]4 years ago
7 0

Answer:

The answer is C) $7,970.

Explanation:

We have 04 reconciling items as below:

- Outstanding checks $800: this amount was already recorded in the Cash account of the company once the check was written; thus, the Cash ending balance has already reflected this amount.

- Deposits in transit $700: this amount was already recorded in the Cash or Cash-equivalent account of the company once the deposit was made; thus, the Cash ending balance has already reflected this amount.

- Bank service charge $30: fees paid to banking activities and are deducted without informing to the company. Thus, this deduction in cash is not reflected in the Cash account.

-  NSF check $500: this was recorded as the increase in Cash account by the company once the check was written by the person/entity to the company. However, the writer's account balance was not sufficient to honor this check amount to the company; thus Cash Account at the end of the period should reduced by $500. Instead, this $500 may be recorded in Account Receivable account.

Thus, the adjusted cash balance = 8,500 - 30 - 500 = $7,970.

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3 years ago
A company borrows $50,000 by signing a $50,000, 8% note that requires six equal payments of (round to the nearest dollar) at the
elixir [45]

Answer:

An information is missing on this question but I found the complete details as shown below;

"A company borrows $50,000 by signing a $50,000, 8% note that requires six equal payments of

<em>10816</em> (round to the nearest dollar) at the end of each year. (The present value of an annuity of six

annual payments, discounted at 8% equals 4.6229.) "

Explanation:

An annuity payment is made in equal amounts for a specified period of time in this case 6 years.

Since the equal payments are made annually and you are given the Present value of the annuity as $50,000 & discount factor of 4.6229, divide the PV by the discount factor. The value of equal payments should be equivalent to the $<em>10816 ;</em>

<em>=50,000 / </em>4.6229

= 10815.7217

Next, round the answer to the nearest dollar;

When rounded to the nearest whole number it becomes $10,816.

<em />

8 0
3 years ago
On January 2, Year 1, Jones Corporation purchased a truck for $39,000. The truck has a 5-year estimated life and a $4,000 estima
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Answer:

Straight-line method:

  • depreciation expense year 1 = ($39,000 - $4,000) / 5 = $7,000
  • depreciation expense year 2 = $7,000
  • depreciation expense year 3 = $7,000
  • depreciation expense year 4 = $7,000
  • depreciation expense year 5 = $7,000

200 declining balance method:

  • depreciation expense year 1 = 2 x 1/5 x $39,000 = $15,600
  • depreciation expense year 2 = 2 x 1/5 x $23,400 = $9,360
  • depreciation expense year 3 = 2 x 1/5 x $14,040 = $5,616
  • depreciation expense year 4 = 2 x 1/5 x $8,424 = $3,369.60
  • depreciation expense year 5 = $5,054.40 - $4,000 = $1,054.40

Sum-of-years-digits method:

  • depreciation expense year 1 = 5/15 x $35,000 = $11,666.67
  • depreciation expense year 2 = 4/15 x $35,000 = $9,333.33
  • depreciation expense year 3 = 3/15 x $35,000 = $7,000
  • depreciation expense year 4 = 2/15 x $35,000 = $4,666.67
  • depreciation expense year 5 = 1/15 x $35,000 = $2,333.33
8 0
3 years ago
If you are planning to carry a large balance on your credit card which of the following credit card features should you look for
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A three-month forward contract on a stock index is trading at $1000. The current index level is $985.1. Assuming a continuously
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Answer:

d

Explanation:

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