On October 31, 2015, Damon Company's general ledger shows a checking account balance of $8,445. The company's cash receipts for the month total $74,640, of which $71,375 has been deposited in the bank. In addition, the company has written checks for $72,515, of which $71,270 has been processed by the bank. The bank statement reveals an ending balance of $12,895 and includes the following items not yet recorded by Damon: bank service fees of $310, note receivable collected by bank of $6,600, and interest earned on the account balance plus from the note of $1,120. After closer inspection, Damon realizes that the bank incorrectly charged the company's account $940 for an automatic withdrawal that should have been charged to another customer's account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31,2015.
Answers
Answer:
Explanation:
Bank Reconciliation: The bank reconciliation deals with the bank statement balance and the cash statement balance. The motive is to compare these two statements so that the organization can run in the smoothly manner.
There are various transactions due to which the bank statement balance and the cash statement balance do not match. To match these statements, we adjust the transactions accordingly.
The outstanding deposits is computed below:
= Company cash receipts - bank deposited
= $74,640 - $71,375
= $3,265
And, the outstanding checks is computed below:
= Company written checks - Processed by bank
= $72,515 - $71,270
= $1,245
The preparation of the bank reconciliation statement on October 31, 2015 for Damon Company's is presented in the spreadsheet. Kindly find the attachment below:
Related Questions
Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in the next period. Management also predicts that the contribution margin per unit will be $63. (1) Compute the total expected dollar sales for next period. Contribution margin Pretax income (2) Compute the number of units expected to be sold next period. Choose Numerator: / Choose Denominator: = Units / = Units
The cost of speeding relates crashed in 2008 accounted for per second
Ryan has moved frequently over his life and now lives in Key West, Florida. He works as a bartender and owns a small home. He has spent most of what money he has made and continues to do so. Ryan's brother, Sam, is very different. He finished graduate school and has saved as much as he can over the years. He owns a small business that he operates with his family. He is by no means rich but is certainly middle-class. Who needs long-term care insurance?
At the start of the year, your firm's capital stock equaled $100 million, and at the end of the year it equaled $105 million. The average depreciation rate on your capital stock is 20%. Gross investment during the year equaled A) $1 million B) $5 million. C) $7 million D) $25 million
Oct. 2 Hires an administrative assistant at an annual salary of $42,000.
Oct. 3 Buys office furniture for $4,600, on account.
Oct. 6 Sells a house and lot for M.E. Petty; commissions due from Petty, $10,800 (not paid by Petty at this time).
Oct. 10 Receives cash of $140 as commission for acting as rental agent renting an apartment.
Oct. 27 Pays $700 on account for the office furniture purchased on October 3.
Oct. 30 Pays the administrative assistant $3,500 in salary for October.
Prepare the debit-credit analysis for each transaction. (If there is no transaction, then enter no effect for the account and 0 for the amount.)
Answers
Answer:
Cash 30,000 debit (+A)
Comon Stock 30,000 Credit (+SE)
furtniture 4,600 debit (+A)
accounts payable 4,600 (+L)
accounts receivables 10,800 debit (+A)
commisions revenue 10,800 (+R)
cash 140 debit (+A)
commisions revenue 140 (+R)
Accounts payable 700 debit (-L)
cash 700 credit (-A)
salaries expense 3,500 debit (+E)
cash 3,500 credit (+A)
Explanation:
Assets (A) and Expenses (E) will icnrease form debit and decrease from credit
Liabilities (L) Revenues (R) and Stochholder equity (SE) will icnrease from credit and decrease from debit
The journal entries must be done considering the rule debit = credit all the times
Answers
Answer:
$ 941 796
Explanation:
The present amount with compound interest is given by the following formula:
where A = $ 1 000 000
t (years) = 44
rate = 6%
= 0.06
The formula becomes:
1 000 000 = P (1 + (0.06/44) (44*1)
1 000 000 = P (1.0618)
P = $ 941 796
so the amount needed to be deposited is $ 941 796
b. Labuk does not have a harassment claim based on national origin because the Fair Labor Standards Act (FLSA) allows employers to discriminate in favor of U.S. citizens.
c. Labuk has a harassment claim based on national origin because Title VII of the Civil Rights Act of 1964 provides protection against discrimination based on country of citizenship.
d. Labuk has a harassment claim based on national origin under Title VII of the Civil Rights Act of 1964 because he belongs to a protected racial class.
Answers
Answer:
a. Labuk does not have a harassment claim based on national origin because these two incidents, although offensive, do not create a hostile work environment.
Explanation:
In order for Labuk to have a valid harassment claim, his supervisor must have created an offensive and hostile work environment. Apparently, the supervisor's bad attitude is not shared by Labuk's colleagues, at least it doesn't say so in the question.
The supervisor's attitude might not have been appropriate, but two incidents in 20 years is something can happen to anyone and not just Labuk. Imagine how many times an employee might argue or have some type of dispute with a supervisor during 20 years. Labuk should have reported both incidents to a company's manager.
Answers
Answer:
Line Authority
Explanation:
Line authority refers to the power or authority assigned to individuals of supervisory position so as to direct and initiate employees to action in a desired manner, with the purpose of accomplishment of organizational goals and objectives.
For example, production manager may exercise line authority and supervise and direct production activities and subordinates.
In the given case, the vice president(VP) of a department i.e marketing tells marketing manager to prepare a presentation by the end of the week. Here, the VP is exercising his line authority, thereby supervising and directing the subordinates towards an action, carried out in organizational interest.
Answers
Missing information:
__?__ Paid the amount due on the note to Locust at the maturity date.
__?__ Paid the amount due on the note to NBR Bank at the maturity date.
Nov. 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $24,000.
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
2017
__?__ Paid the amount due on the note to Fargo Bank at the maturity date.
Required: prepare journal entries
Answer:
2016 Apr. 20 Purchased $37,500 of merchandise on credit from Locust, terms n/30.
April 20, 2016, merchandise purchased on account
Dr Merchandise inventory 37,500
Cr Accounts payable 37,500
May 19 Replaced the April 20 account payable to Locust with a 90-day, $35,000 note bearing 8% annual interest along with paying $2,500 in cash.
May 19, 2016, replaced account payable with note payable
Dr Accounts payable 37,500
Cr Cash 2,500
Cr Notes payable 35,000
July 8 Borrowed $54,000 cash from NBR Bank by signing a 120-day, 10% interest-bearing note with a face value of $54,000.
July 8, 2016, borrowed $54,000 from bank
Dr Cash 54,000
Cr Notes payable 54,000
__?__ Paid the amount due on the note to Locust at the maturity date.
August 17, 2016, paid note payable to Locust
Dr Note payable 35,000
Dr Interest expense 690.41 ($35,000 x 8% x 90/365)
Cr Cash 35,690.41
__?__ Paid the amount due on the note to NBR Bank at the maturity date.
November 5, 2016, paid bank's debt.
Dr Notes payable 54,000
Dr Interest expense 1,775.34 ($54,000 x 10% x 1220/365)
Cr Cash 55,775.34
Nov. 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 6% interest-bearing note with a face value of $24,000.
November 28, 2016, borrowed $24,000 from bank
Dr Cash 24,000
Cr Notes payable 24,000
Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
December 31, 2016, accrued interests on bank debt
Dr interest expense 130.19 (= $24,000 x 6% x 33/365)
Cr Interest payable 130.19
2017
__?__ Paid the amount due on the note to Fargo Bank at the maturity date.
January 27, 2017, paid bank's debt.
Dr Note payable 24,000
Dr Interest payable 130.19
Dr Interest expense 106.52 (= $24,000 x 6% x 27/365)
Cr Cash 24,236.71
Final answer:
Tyrell Co. replaced an account payable with a 90-day, $35,000 note bearing 8% annual interest and borrowed $54,000 from NBR Bank, marking these as short-term liabilities. Singleton Bank also made a $9 million loan to Hank's Auto Supply, adding to their assets.
Explanation:
Tyrell Co. entered into two transactions in 2016 that involved short-term liabilities. In both cases, these liabilities came in the form of interest-bearing notes. On April 20th, Tyrell Co. purchased $37,500 worth of merchandise on credit from Locust. Then, on May 19th, this account payable was replaced with a 90-day, $35,000 note bearing 8% annual interest, along with $2,500 in cash. In a similar transaction on July 8th, Tyrell borrowed $54,000 cash from NBR Bank, signing a 120-day note with a 10% interest rate.
In a parallel example, Singleton Bank made a loan of $9 million to Hank's Auto Supply. The bank records this transaction on the balance sheet as an asset, as it will generate interest income for the bank. The key takeaway from both examples is the process of converting accounts payable or obtaining loans into interest-bearing notes, which become short-term liabilities on the balance sheet.
Learn more about Short-Term Liabilities here:
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Answers
Answer:
what is the question being asked here?