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3 years ago

Bank charged interest on overdraft Rs. 500 journal entry

Business

1 answer:

Komok [63]3 years ago

7 0

Answer:

interest is overdraft a/c.

Explanation:

In the cash book the above entry would be recorded on the credit side and as we know that pass book is an exact opposite record of the cash book so, interest on bank overdraft would be recorded on the debit side of the pass book

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For each of the following scenarios, determine if it is an indicator of potential cash flow problems: (Hint: Review Chapter 5 Po

inn [45]

Answer:

a) yes

b) no

c) yes

d) no

Explanation:

a) if the A/R balance grow higher than the sales is an indicator that our collection cycle increase thus, customer extend their financiation providing less cash flow

b) this is the opposite as (a) here we extend our financing agaist our suppliers. The payment cycle increases thus, decreasing the overall cash demand

c) If the assets were puirchased on cahs a huge amount was used alrady affecting the liquidity of the company.

If the company finance the purchase of the long term assets, in the future the company will have to dedicate a portion of their future cahs flow to pay up interest and principal which is what we should analize; wether or not the company will have difficulties in the future and the answer is yesin both scenarios.

d) no. It will not, as marketable securities are generally short-term and easily converted into cash in the short term. They do not generate cash flow problems in the long run as the company can sale them anytime to obtain cash.

6 0

4 years ago

____________ include veteransâ€™ payments, welfare, and social security payments..

zvonat [6]

Answer:

Statement of Payments

Explanation:

Statement of Payments include veteransâ€™ payments, welfare, and social security payments..

Social Security Benefits are payments made to qualified retirees, disabled persons, to their spouses, children and survivors etc.

A statement of payments is usually submitted with income tax return to receive the Senior Citizens'€™ Exemption.

7 0

3 years ago

5) Scanlin, Inc. is considering a project that will result in initial aftertax cash savings of $2.1 million at the end of the fi

rewona [7]

Answer:

The PV of future cash flow is $22,925,764, therefore the company should take on the project

Explanation:

In order to know if the company should take on the project we have to calculate the PV of future cash flow as follows:

PV of future cash flow= D1

RE-g

To calculate this formula we requre to calculate the WACC and the discount rate as follows:

WACC=(1.00/1.80×0.11)+0+(0.80/1.80×0.046)

WACC=0.0611+0+0.02044

WACC=0.081556

WACC=8.16%

After having calculated the WACC we can calculate the project discount rate as follows:

project discount rate=WACC + Additional risk factor

=8.16%+3%

=11.16%

Therefore, PV of future cash flow= $2,100,000

0.1116-0.02

PV of future cash flow= $2,100,000

0.0916

PV of future cash flow=$22,925,764

The PV of future cash flow is $22,925,764, therefore the company should take on the project

4 0

3 years ago

Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $5.4 million. The machinery can be sold to the Romul

Semmy [17]

Answer:

a. $5,194,000

b. $7,715,000

Explanation:

a. Book Value of assets = Book value of fixed assets + book value of current assets

Book Value of assets = Book value of fixed assets + (Current Liabilities + Net working capital)

Book Value of assets = $4,200,000 + ($850,000 + $144,000)

Book Value of assets = $5,194,000

b. Sum of market value = $7,600,000 + ($965,000 - $850,000)

Sum of market value = $$7,600,000 + $115,000

Sum of market value = $7,715,000

8 0

3 years ago

Northern Air has dozens of flights daily into and out of Belleville Airport, which is highly congested. Northern Air depends for

gladu [14]

Answer:

The answer is E.

Explanation:

Given the information about the airline company Northern Air and their problem with Belleville airport, when we evaluate the options for any disadvantages for Northern Air we can say that;

Option A, being able to schedule flights without stopping for refueling is completely an advantage for Nothern Air.

Option B, the decline of the cost of aviation fuel over the next several years can only cause a problem if the amount they will save from their fuel costs and other costs are going to exceed the amount that will be spent on the Skybuses.

Option C, several mechanics losing their jobs is certainly not the most serious disadvantage Northern Air is going to have from this action.

Option D, the fact that none of Northern Air's competitors in the Belleville Airport are buying Skybuses is not a disadvantage for Northern Air.

Option E, the aerodynamic of the Skybus causing turbulence and therefore leading the delay for the take-off could be a serious disadvantage because of its affects to the company's strict flight schedules.

I hope this answer helps.

4 0

3 years ago

Bank charged interest on overdraft Rs. 500 journal entry​

Bank charged interest on overdraft Rs. 500 journal entry