Answer:
The bank reconciliation statement is as shown below:
Amount in $
Balance per bank statement 33,650.00
Deposit in transit 9,150.00
Outstanding check (17,865.00)
Bank charges 80.00
Note collected (6,095.00)
Returned check (540.00)
Check drawn <u> (630.00)
</u>
Book balance <u> 17,750.00</u><u> </u>
Explanation:
Deposit in transit has been recorded in the books, thus the addition to the bank balance. Bank charges have been deducted from the bank balance but not in the cash book hence it is added back. Note collected is yet to be recognized in the books hence the deduction from the bank balance.
Amount recorded from the check returned is more than the actual by $540 hence the deduction. The check drawn has been over charged by the bank to the tune of $630 hence the deduction.
Answer:
The answers are:
1. combined producer surplus = $69
2. Alice and Amber (b)
Explanation:
A producer surplus is the difference between how much a producer sells a product in the market, and how much he is willing to sell the product for, if the market price is higher than the price he was willing to sell the product for.
The combined producer surplus of the ladies is the sum of their individual producer surpluses, and it is calculated as follows;
Alice: willing price = $35, market price = $70, therefore surplus
= 70 - 35 = $35
Amber: willing price = $38, market price = $70, ∴ surplus = 70 - 38 = $32
Andy: willing price = $68, market price = $70, ∴ surplus = 70 - 68 = $2
Combined producer surplus = 35 + 32 + 2 = $69
b. In this case the price of the 5 inch pot in the market is $45, Alice and Amber will sell their pots because the price in the market exceeds their willing price of $35 and $38 respectively and they will make producer surpluses of $10 and $7 respectively, but Andi on the other hand will not sell her pot because if she does, she will make a loss, as her willing price is $68 and the market price is $45, if she goes ahead to sell she will incur a loss of $23.
Answer:
Bank X will received: $13,554.73.
Explanation:
* Calculation of Betty equal monthly repayment by using present value formula for annuity: 19,800 = PMT/1% x ( 1 - 1.01^-36) <=> PMT = $657.643
* The effective annual rate at the time of loan selling is calculated as: (1+14%/2)^2 - 1 = 14.49% => The monthly discount rate is 1.1449 ^(1/12) -1 = 1.134%
After the 16th payment is made, there is another 20 equal repayments, made at the end of each months; so we have 20 discounting periods, PNT = 657.643; discounting rate = 1.134%
=> Price Bank X receives = Present value of the repayment stream = 657.643/0.0134 x [1 - 1.0134^(-20)] = $13,554.73.
Answer:
<em>555 000 US$
</em>
Explanation:
<em>Cash sales(25%) Credit sales(75%)
</em>
January (400,000*25%)=100000 (400,000-100000)=300,000
February (600,000*25%)=150,000 (600,000-150,000)=450,000
Customer collections to the month of February.
= $150,000 + ($450,000 * 0.7) + ($300,000*0.3)
<em>(Balance collections = (100 - 70) = 30%)
</em>
