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3 years ago

Why it is important to prepare a bank reconciliation statement at the end of each month

Business

1 answer:

AysviL [449]3 years ago

5 0

Explanation:

The purpose of preparing a Bank Reconciliation Statement is to detect any discrepancies between the accounting records of the entity and the bank besides those due to normal timing differences. Such discrepancies might exist due to an error on the part of the company or the bank.

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When a bank accepts a checkable deposit from a customer, its deposits will increase and its excess reserves will:________

worty [1.4K]

Answer:

B). increase by the same amount of deposits

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3 years ago

These items are taken from the financial statements of Coronado Industries at December 31, 2017. Buildings $105,800 Accounts rec

swat32

Answer:

Assets: Liabilities:

Current Assets Current Liabilities

Cash 11,840 Accounts payable 9,500

Accounts receivable 12,600 Notes payable(current) 13,600

Prepaid insurance 3,200 Interest payable 3,600

Total current assets: 27,640 Total Current Liab 26,700

Fixed assets: Long-term Liabilities:

Buildings (net) 60,200 Note Payable: 80,000

Equipment (net) 63,680 Total Liabilities 106,700

Land 61,200 Equity:

total fixed assets: 185,080 Common stock 60,000

RE 46,020

Total Equity 106,020

Total Assets: 212,720‬ Total Liab + E 212,720

Explanation:

for RE we need to calculate the net income

income:

Service revenue 14,700

Insurance expense ( 780 )

Depreciation expense ( 5,300 )

Interest expense ( 2,600 )

Net income: 6,020

RE 40,000 + 6,020 = 46,020

for note payable we split the current and long term portion

93,600 - 13,600 = 80,000 long term debt

te rest is self-explanatory

8 0

3 years ago

You rent a car for $29.95. The first 150 miles are free, but each mile thereafter costs 15 cents. You drive it 200 miles. What i

ohaa [14]

Answer:

The marginal cost of driving the car is $7.50 + the cost of gas.

Explanation:

Initial cost: $29.95

200 miles you drove- 150 miles free= 50 miles you have to pay for

50 miles * 15 cents per mile

50* 0.15= $7.5

$7.50

4 0

2 years ago

A rise in the interest rate increases the opportunity cost of consuming today. increases the opportunity cost of consuming in th

ExtremeBDS [4]

Answer:

increases the opportunity cost of consuming today

Explanation:

Consumption today is inversely related to interest rate.

If interest rate rises, consumption falls and if interest rate falls, consumption increases.

If interest rate is higher, the amount that can be earned on savings increases and this increases the incentives to save more now and consume less today.

3 0

3 years ago

In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following c

Ostrovityanka [42]

Answer:

1. Predetermined Overhead Rate 2.3

2. Under applied Overhead $ 8300

3.Cost of goods sold $ 8,300 Dr

Factory overhead $ 8300 Cr

Explanation:

As direct labor is not given overhead rate is calculated on the basis of direct material costs

Predetermined Overhead Rate= Estimated Overheads/ Estimated Direct Materials Cost

1. Predetermined Overhead Rate= $460,000/ $200,000= 2.3

Now we multiply the predetermined overhead rate with the actual material costs to get the aplpied overhead. And the difference is found.

Actual Overheads $1,271,100

Applied Overheads = 2.3 * $ 549,000 = $ 1262700

2. Under applied Overhead = Actual Overhead- Applied Overhead

= $1,271,100-$ 1262700= $ 8300

The under applied overhead is debited to Cost Of Goods Sold.

No Date General Journal Debit Credit

1 Dec 31 Cost of goods sold $ 8,300 Dr

1 Factory overhead $ 8300 Cr

8 0

4 years ago

Why it is important to prepare a bank reconciliation statement at the end of each month​

Why it is important to prepare a bank reconciliation statement at the end of each month