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3 years ago

Explain the method of bookkeeping ?

1 answer:

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The two main accounting methods are cash accounting and accrual accounting. Cash accounting records revenues and expenses when they are received and paid. Accrual accounting records revenues and expenses when they occur. Generally accepted accounting principles (GAAP) requires accrual accounting.

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Ned Douglas owns Ned’s Blankets. Ned asks you to explain how he should treat the following reconciling items when reconciling th

eimsori [14]

In accounting, the purpose of reconciliation is to compare two sets of records for correction and make sure they are in agreement.

Here, Ned have some items which needed to be reconciled with the company’s bank account.

For "the Outstanding checks", he should deduct the amount from balance per bank
For "a deposit in transit", he should add to balance per bank
For "the bank charged to our account a check written by another company", he should add to balance per bank and notify the bank of its error.
For "a debit memorandum for bank service charge", he should deduct from balance per books.

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3 0

3 years ago

An economist has conducted extensive research and has found that jones cola is a substitute for tucker cola. ceteris paribus, th

madam [21]

Answer: Increase in demand

Explanation: Change in demand occurs when factors affecting demand other the its price changes. While, a change in quantity demanded occurs when the price of the good changes other things constant. Since, jones cola and tucker cola are substitutes to each other. A rise in the price of jones cola will shift demand towards tucker cola. This, will lead to a rightward shift in the demand curve for tucker cola and an increase in demand for tucker cola.

8 0

4 years ago

A farmer and a meatpacker use the commodity markets to reduce their risk. One agrees to buy live cattle in the future at a fixed

VLD [36.1K]

Answer:

A farmer is the one that owns the cattle and is ready to sell it on the market demand, while the meatpacker is the one who buys the product and sells it in different parts to the end consumers.

Since they both are using the commodity market to reduce the risk, the farmer will be the one who agrees to sell the cattle in the future at a fixed rate, while the meatpacker will be the one who agrees to buy the cattle in the future at a specified price fixed by him.

Hope this helps. ThankYou.

3 0

3 years ago

Nelter Corporation, which has only one product, has provided the following data concerning its most recent month of operations:S

Gnesinka [82]

Answer:

Part a

Nelter Corporation

Contribution format income statement for the month using variable costing

Sales ($ 122 x 6,590) $803,980

Less Cost of Goods Sold

Beginning Inventory $20,300

Add Cost of Goods Manufactured $462,000

Less Ending Inventory ($21,000) ($461,300)

Contribution $342,680

Less Expenses

Selling and administrative expense :

Variable ($21 x 6,590) $138,390

Fixed $46,130

Fixed manufacturing overhead $ 151,800 ($336,320)

Net Income (Loss) $6,360

Part b

Nelter Corporation

Income statement for the month using absorption costing

Sales ($ 122 x 6,590) $803,980

Less Cost of Goods Sold

Beginning Inventory $26,970

Add Cost of Goods Manufactured $613,800

Less Ending Inventory ($27,900) ($612,870)

Gross Profit $191,110

Less Expenses

Selling and administrative expense :

Variable ($21 x 6,590) $138,390

Fixed $46,130 ($184,520)

Net Income (Loss) $6,590

Explanation:

Variable Costing Calculations

Unit Product Cost = Variable Manufacturing Costs

= $ 42 + $ 26 + $ 2

= $ 70

Cost of Goods Manufactured = 6,600 x $ 70 = $462,000

Opening Inventory = 290 x $ 70 = $20,300

Ending Inventory = 300 x $70 = $21,000

Absorption Costing Calculations

Unit Product Cost = Variable Manufacturing Costs

= $ 42 + $ 26 + $ 2 + ($ 151,800 ÷ 6,600)

= $ 42 + $ 26 + $ 2 + $23

= $93

Cost of Goods Manufactured = 6,600 x $93 = $613,800

Opening Inventory = 290 x $93 = $26,970

Ending Inventory = 300 x $93 = $27,900

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3 years ago

Identify which of the following lists of accounts would belong on the statement of retained earnings.

mel-nik [20]

Answer:

B. Retained earnings and Dividends

Explanation:

Retained earnings can be defined as the amount of a business’s profits or net income which isn't distributed to shareholders as dividends but are rather reserved so that it can be reinvested subsequently into the business.

Simply stated, retained earnings of an organization is the profit or net income remaining after paying the shareholders their dividends, which can then be reinvested into the business again. These earnings can be used for fixed or capital expenditures such as buying a new equipment, servicing debt profile, researching and development of the company's products.

A statement of retained earnings is a financial document which is usually prepared by an organization for use by the public such as investors, lenders and creditors. Hence, the statement of retained earnings are typically recorded under the shareholder's equity in order to represent the relationship between the balance sheet and income statement. Also, it is important and required that the statement of retained earnings is prepared in accordance with the Generally Accepted Accounting Principles (GAAP).

The following lists of accounts would belong on the statement of retained earnings;

1. Retained earnings: an amount of money left as profits or accumulated net income.

2. Dividends: an amount of money being paid to shareholders from an organization's net income or profit.

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4 years ago

Explain the method of bookkeeping ?​

Explain the method of bookkeeping ?