BUSINESS COLLEGE

Aragon Company has just received the August 21, 2010 bank statement, which is summarized below. County National Bank Disbursements Receipts Balance

Balance, August 1 $9,369

Deposits during August $32,200 41,569

Note Collected for depositor, including $40 interest 1,040 42,609

Checks cleared during August $34,500 8,109

Bank Service Charges 20 8,089

Balance, August 31 8,089

The general ledger Cash account contained the following entries for the month of August.

Cash

Balance, August 1 10,050 Disbursements for August 35,403

Receipts during August 35,000

Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,550. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.

Instrustions:

a. Preare a bank reconciliation dated August 31, 2010, proceeding to a correct balance.

b. Prepare any entries necessary to make the books correct and complete.

c. What amount of chas should be reported in the August 31 balance sheet?

Answers

Answer 1
Answer:

a. The preparation of the bank reconciliation is shown below.

b. The entries are given below.

c. The amount of cash should be $10,649.

Preparation, journal entries:

a. The preparation of the bank reconciliation is presented below.

Bank balance as per bank statement $8,089

Add: cash on hand $310

Add: deposit in transit $3.800

Less: outstanding checks $1,550

Adjusted balance $10,649

Balance as per cash book ($10,050 + $35,000 - $35,403) $9,647

Less: correction ($164.5 - $146.5) $18

Less: bank service charge $20

Add: note collected $1,040

Adjusted balance $10,649

b. The journal entries:

Cash $1,040

  Note receivable $1000

 Interest receivable $40

(Being collection od note & interest)

Bank charges $20

      cash $20

(being bank charges are recorded)

Supplies expense $18

         cash $18

(Being error in recording check)

c. The amount of cash should be $10,649.

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Answer 2
Answer:

Answer:

Complete solution in tabular form is given below for better understanding and demonstration.

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Tanner-UNF Corporation acquired as a long-term investment $330 million of 5.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Tanner-UNF paid $300.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $310.0 million. Required: 1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate. 3. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet? 4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $290.0 million. Prepare the journal entry to record the sale.

Budgeted production needs are determined by: A. adding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total. B. adding budgeted sales in units to the beginning inventory in units and deducting the desired ending inventory in units from this total. C. adding budgeted sales in units to the desired ending inventory in units. D. deducting the beginning inventory in units from budgeted sales in units.

Answers

Answer: Option (A) is correct.

Explanation:

The budgeted production determines the number of units that should be produced. It is derived from the combination of two components i.e. sales forecast and finished goods inventory in hand.

Budgeted production:

= Budgeted sales in units + Desired ending inventory in units - Beginning inventory in units

Answer:

The correct option is A. dding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total

Explanation:

The formula to computed the budgeted production is shown below:

= Ending inventory in units + Budgeted sales in units - Beginning inventory in units.

where,

Ending inventory is the inventory which is left at the end of the year or we can say the closing stock of inventory

Budgeted sales are the sales which is to be sell in the future

Beginning inventory is that inventory which shows at the starting of the year or we can say opening stock of inventory

Therefore, the remaining options are incorrect.

So, the correct option is A. dding budgeted sales in units to the desired ending inventory in units and deducting the beginning inventory in units from this total

Which of the following are significant ways in which service systems differ from manufacturing systems? (You may select more than one answer)a. Service is tangible unanswered.
b. You cannot inventory service checked.
c. Employees do not require any technical training unanswered.
d. The service itself cannot be patented checked.
e. The process is part of the product

Answers

Answer:

The correct answers are letters "A", "B", "D" and "E".

Explanation:

A service system is a combination of Information Technology (IT) technologies and corporate networks that provide services to customers. Service systems have added values that differentiates and include the efforts of people in the operations. Online education programs are examples of service systems.

Manufacturing systems are the traditional organizations in which a product is created with the use of materials, labor, managerial support, and equipment to produce goods in organized and established cycles aiming to offer a product that satisfies consumers' needs.

Compared to manufacturing systems, service systems are intangible because even if people can make use of them, they are not physic; they cannot be inventoried since there is no specific form of measuring service systems by units; they cannot be patented because most service systems add value to already existing services with the use of technology; and, the process of providing the service is the product itself.

Final answer:

Service systems differ from manufacturing systems in several ways, particularly in that services can't be inventoried, they usually can't be patented, and the process of service delivery is often considered part of the product itself. Hence the correct option is (b, d).

Explanation:

Significant ways in which service systems differ from manufacturing systems include the fact that you cannot inventory service and the service itself cannot usually be patented. These characteristics highlight major differences between services and physical products.

In addition, the process of delivering the service is often considered part of the product in a service system. For instance, customer experience is integral to services delivery, unlike in manufacturing where the product and its manufacturing process are usually distinct.

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KINGBIRD, INC. Income Statement For the Year Ended December 31, 2020 Sales revenue $446,700
Cost of goods sold 202,300
Gross profit 244,400
Expenses (including $16,300 interest and $20,800 income taxes) 70,800
Net income $ 173,600

Additional information:

1. Common stock outstanding January 1, 2020, was 27,200 shares, and 38,600 shares were outstanding at December 31, 2020.
2. The market price of Kingbird stock was $15 in 2020.
3. Cash dividends of $21,700 were paid, $6,500 of which were to preferred stockholders.

Compute the following measures for 2020.

(a) Earnings per share
(b) Price-earnings ratio
(c) Payout ratio

Answers

Answer and Explanation:

The computation is shown below:

a. Earning per share

= (Net income - preferred dividend) ÷ (Weighted average number of outstanding shares)

= ($173,600 - $6,500) ÷ (27,200 shares + 38,600 shares) ÷ 2

= $167,100 ÷ 32,900 shares

= $5.08 per share

b. Price earnings ratio = Market price ÷ Earning per share

                                    = $15 / $5.08

                                    = 2.95

c. Payout ratio = Dividend paid ÷ Net income

= ($21,700 - $6,500) ÷ ($173,600)

= 8.76%

This service allows you to pay at a point of sale and accesses funds in the bank but usually does not charge you a fee:A credit card

A student loan

A debit card

A car loan

Answers

Answer:

A debit card

Explanation:

A debit card allows customers to make electronic payments using the funds at their bank accounts. If the customer does not have sufficient funds in their bank accounts, the transaction won't go through.

A debit card is similar to a credit card in appearance. However,  a debit card does not levy interest fees or late payment fees because it's not a credit facility.

The cost of direct materials transferred into the Rolling Department of Kraus Company is $3,000,000. The conversion cost for the period in the Rolling Department is $462,600. The total equivalent units for direct materials and conversion are 4,000 tons and 3,855 tons respectively. Determine the direct materials and conversion costs per equivalent unit.

Answers

Answer:

the direct material & conversion cost per equivalent unit is $750 per ton and $120 per ton

Explanation:

The calculation of the direct material & conversion cost per equivalent unit is given below:

Direct materials per equivalent unit is

= $3,000,000 ÷ 4,000 tons

= $750 per ton

And,  

Conversion costs per equivalent unit is

= $462,600 ÷ 3,855 tons

= $120 per ton

Hence, the direct material & conversion cost per equivalent unit is $750 per ton and $120 per ton

Sitwell Corporation manufactures titanium and aluminum tennis racquets. Sitwell’s total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Titanium Aluminum Total Cost Assembly 500 mach. hours 500 mach. hours $45,000 Inspections 350 150 $75,000 2,100 labor hours 1,900 labor hours Sitwell is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much "assembly cost is assigned to titanium racquets"?

Answers

Answer:

$22,500

Explanation:

Activity based costing (ABC) is a method of cast allocation where the overheads and other indirect costs are  allocated to products and services based on the volume of different activities consumed by each product.

The total cost pool is divided by the defined cost drivers to determine the cost driver rate.

                       Titanium Hours    Aluminium hours                  Cost

Assembly                   500                      500         1000           45000

Inspection                   350                      150           500            75000

Labor hours               2100                      1900        4000          120000

Cost per labor hour   = 120000/4000= 30

Using activity based costing , portion of the assembly cost assigned to titanium Racquets =   Titanium assembly hours / total assembly hours * total assembly cost

500/1000*45000

=22,500
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