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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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Misty and John formed the MJ Partnership. Misty contributed $50,000 of cash in exchange for her 50% interest in the partnership

Pie

Answer:

$78,000

Explanation:

The computation of interest at year end is shown below:-

Interest at year end = Cash contribution + Income of partnership + Share of partnership liabilities - Cash from the partnership

= $50,000 + $20,000 × 50% + $60,000 × 50% - $12,000

= $90,000 + $10,000 + $30,000 - $12,000

= $78,000

Therefore for computing the partnership interest at year end we simply applied the above formula by considering all the items given in the question

4 0

3 years ago

What type of economic system are you a part of?

Reil [10]

Answer:

As I live in the US, I am the part of capitalistic economic system.

Explanation:

There are different types of economic system followed by different countries in the world. Economic system may be socialistic, communistic or capitalistic.

Capitalism is the type of economic system where capitals are under the control and owned privately or corporately through private investments rather than state control.
It is characterized by the determining production of goods, prices of the products and distribution of the products. It uses markets for the effective utilization of the produced goods. The economy is maintained by the capital profit made from the use of these goods.

5 0

3 years ago

Fran’s Fries has budgeted sales for May, June and July at $500,000, $680,000 and $720,000, respectively. Sales are 80% cash and

nika2105 [10]

Answer:

Results are below

Explanation:

Giving the following information:

Sales are 80% cash and 20% on account.

Sales:

May= $500,000

June= $680,000

July= $720,000

Cash collection June:

Cash collection from May= (500,000*0.2)= 100,000

Cash collection June= (680,000*0.8)= 544,000

Cash collection June= $644,000

Cash collection July:

Cash collection from June= (680,000*0.2)= 136,000

Cash collection July= (720,000*0.8)= 576,000

Cash collection July= $712,000

3 0

3 years ago

The graph shows the percentage changes in the investment rate and the gross domestic product (GDP) between 2008 and 2012.

Leni [432]

Answer:

The graph following these guidelines:

A graph titled Percentage changes in investment rate and G D P has year on the x-axis, from 2008 to 2012, and percentage changed on the y-axis from negative 20 to positive 10 percent, in increments of 5. Both the lines representing investment rate and G D P follow the same trend.

Demonstrates thatchanges in investment

can show if the economy is growing or shrinking.

Explanation:

This graph is a very illustrative one that marks the increment of both the investment rate and the GDP. Establishing a correlation between them means that one is dependant from the other and that the movement in one can create a specific movement in the other. Generally, investment boosts GDP. Now we can use this to deduct growth or decrease in the economy.

4 0

4 years ago

Taylor Company has current sales of 1,000 units, which generates sales revenue of $190,000, variable costs of $76,000 and fixed

Leya [2.2K]

Answer:

The change in net operating income after the changes by $14,200

Explanation:

For computing the change in net operating income, first, we have to compute the contribution per unit which is shown below:

Contribution per unit = Selling per unit - variable cost per unit

= $190 per unit - $76 per unit

= $114 per unit

where,

The selling per unit = (Sales revenue ÷ number of units)

= ($190,000 ÷ 1,000 units)

= $190 per unit

The variable cost per unit = (variable cost ÷ number of units)

= ($76,000 ÷ 1,000 units)

= $76 per unit

Now the change in operating income equals to

= (increased sales units × contribution per unit) - advertising cost

= (300 units × $114 per unit) - $20,000

= $34,200 -$20,000

= $14,200 increase

7 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