Credit crunch definition.

Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with can

oksano4ka [1.4K]

Answer:

Harrison company

Step 1.

Preparation of adjusted Cash Book

Balance as at July 31, 2016 = $40,293

Add: bal. of Deposit by credit customer = ($3,100 - $310) = $2,790

Deduct: Bank Service charge = -$30

Deduct: NSF checks = -$1,750

Deduct: loan repayment plus interest = -$3,870

Adjusted Balance =$37,433

Step 2. Bank reconciliation statement

As at 31st July 2016

Balance as per Bank Statement = $38,293

Deduct: uncleared Cheques = -$8,530

Add: Deposits outstanding = $7,400

Add: over disbursement by bank due for recovery = $270

Adjusted Bank Statement = $37,433

Compared to Adjusted Cash Book = $37,433

Difference = $0.

Step 3.

Journal entries required

Debit Cash Account with $2,790

Credit Account Receivables with $2,790

(Under recorded Customer deposit on sales)

Debit NSF expense = $1,750

Debit Loan Account with $2,900

Debit interest on Loan Account with $970

Debit Bank Charges expense a account with $30

Credit Cash Account with $5,650

(Direct debits to bank account on sundry transactions)

Explanation:

A bank reconciliation statement is presented to reconcile a 3rd party (Bank) statement of our Account and the Account maintained by the business in house.

The objective of the Bank reconciliation statement includes:

1. Identify the missing entries in either records

2. Flag the corrections the Bank needs to do to bring our balance to a correct state

3. Pass Journals to capture entries we have missed out or captured incorrectly

4. Identify unassigned entries for investigation

5 0

3 years ago

Pam and Lennyâs ice cream shop charges $1.6 for a cone. Variable expenses are $0.35 per cone, and fixed costs total $2,200 per m

Andrei [34K]

Answer:

Pam and Lenny's Ice Cream Shop

a. The effect of the promotion on operating income for the second week of February is an increase by $350.

b. The promotion should occur. The shop will make additional operating income of $350 within the second week. And there will be spillover positive effects during the coming weeks after the promotion.

Explanation:

a) Data and Calculations:

Selling price per cone of ice cream = $1.60

Variable expenses = $0.35

Contribution = $1.25

Fixed costs per month = $2,200

Additional sales from the promotion = 650 cones

Revenue from additional sales = $1,040.00 ($1.60 * 650)

Variable cost 227.50 ($0.35 * 650)

Cost of promotions:

Giveaways 297.50 ($0.35 * 850)

Advertising costs 165.00

Total costs $690.00

Additional income $350.00

6 0

3 years ago

You decide to open a bookstore with a wide selection, comfortable seating, and an internal coffee shop because it has worked ver

amid [387]

Yes because you aren’t doing anything special with your bookstore since it is the same as others

5 0

3 years ago

Which of the following is not an example of an external failure cost? Warranty claims Handling complaints Loss of customer goodw

babymother [125]

Answer:

An example of external failure cost is:

Scrap and rework during production

Explanation:

External failure cost is the concept used in the finance, business, and management sciences to qualify the loss of a business after a product is sold. Examples involve lawsuits, legal fees, returns, etc. Now, the argument behind the answer is that warranty claims on handling are not part of the company, but the carrier and the retailer company. but scrap and rework during production is an external failure cost because after the production and selling scrap and rework during production will remain.

6 0

3 years ago

4. Staff-level briefings are conducted by the supervisor to introduce co-workers, clarify tasks, define the scope of work, descr

gizmo_the_mogwai [7]

The correct question should have been:

Staff-level briefings are conducted by the supervisor to introduce co-workers, clarify tasks, define the scope of work, describe sources of work supplies, and present the work schedule. True or False

Answer: True.

Explanation:

A staff-level briefing is a type of meeting held for members of staff of a company, where information or instructions are been passed across from the management of the company to the members of staff. The information passed during a staff-level briefing is only meant for staff consumption.

7 0

4 years ago

Credit crunch definition.​

Credit crunch definition.