Answer and Explanation:
The preparation of the bank reconciliation statement is shown below:
Cash balance as per bank $3,510
Add: Deposits in transit $1,690
Less: Outstanding checks -$1240
Adjusted bank balance $3,960
Cash balance as per books $4,050
Less: Bank service charge -$81
Less: Check for supplies error -$9 ($76 - $67)
Adjusted cash balance $3,960
Therefore both the balances are matched
A bank reconciliation ensures agreement between a company's financial records and the bank's records. For Blossom Company, the reconciled balance for July 31, 2022, is $3,960, after taking into account outstanding checks, deposits in transit, bank fees, and a check discrepancy.
A bank reconciliation is a process that ensures a company's financial records are accurate and in agreement with the bank's records. For Blossom Company, let's start with both the bank statement balance and the cash account balance.
Next, we consider the outstanding checks and the deposits in transit. These are transactions that the company recognizes, but the bank has not yet processed. The outstanding checks total $1,240 and the deposits in transit add up to $1,690. We need to subtract the checks from the bank's balance and add the deposits to the bank's balance:
New bank balance = $3,510 - $1,240 (outstanding checks) + $1,690 (deposits in transit) = $3,960
Next, we take into consideration the bank's service charges and any errors in the check record. The bank's service charge is $81, and a check recorded as $67 in the ledger should have been recorded as $76.
New cash account balance = $4,050 - $81 (bank service charge) - $9 (check discrepancy) = $3,960.
From our calculation, both the bank and cash balances match, so the bank reconciliation for July 31, 2022, for Blossom Company is complete, and the reconciled balance is $3,960.
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Answer: a. added to Inventory.
Explanation:
A Perpetual Inventory system is one where the inventory records of a company are updated as soon as inventory is either received or sold thus ensuring that the inventory balance is more accurate.
When using a perpetual inventory system, a key feature is that the transportation costs of the inventory are added to the inventory as part of the costs of acquiring the inventory unlike with the periodic system where a separate account will be maintained.
Answer:
The correct answer is letter "D": Private negotiations.
Explanation:
Environmental efficiency through markets is in charge of promoting the creation of more goods and services without the need for exploiting more resources or increasing pollution. Its purpose is to take sustainability towards economic efficiency considering ecological awareness.
In that case, private negotiations could boost environmental efficiency since firms could create partnerships among them to contribute to each other in their production process to avoid the use of more natural resources.
Answer: Ethical Egoism
Explanation:
The theory of Ethical Egoism posits that people or entities are well within their rights to act in a manner that benefits their best interest and in so doing are being good in their own right.
The small bank acted in such a manner that it left itself unexposed to risk whilst still making quite a huge profit. The small bank pursued its own interests and so followed the moral theory of Ethical Egoism.
The bank is operating under the moral theory of Moral Egoism. It acts in its own best interest by making large profits off the home loans and offloading the long-term risk.
The bank's actions seem to align with the Moral Egoism theory. This theory suggests that an entity, in this case, the bank, acts in its own best interest. Offering home loans at extremely low initial rates turns in large profit for the bank, which is its main interest. However, offloading the risk of these loans onto another bank marks the bank's primary focus on their well-being rather than the consequences for their customers in the long run. These customers may struggle if the larger bank they deal with lacks flexibility in difficult situations.
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Answer:
In year 1 the warranty expense reported is $450 ($9,000 x 5%)
Explanation:
The journal entries would be:
Sales journal entry - August 16 - Year 1
Account Debit Credit
Cash $9,000
Cost of goods sold $4,500
Revenue $9,000
Inventory $4,500
Accrued Warranty Expense - December 31 - Year 1
Account Debit Credit
Warranty Expense $450
Estimated Warranty
Liability $450
By the end of Year 1, the company has recognized an accrued expense (an accrued expense is recognized before cash is actually paid out) for $450.
b) Evaluate independence matters not addressed in the code of professional conduct.
c) understand the rules on the confidential client information and acts discreditable to the profession.
d) more easily interpret conflicts of interest and subordination of judgement by a member.
Option C is the correct answer. The AICPA's conceptual framework for independence is utilized or used to assess any challenges to members' independence.
Litigation, adverse interest between or among the CPA firm and the client, self-interest, familiarity outcoming in a financial benefit result to the CPA firm, CPA firm owning stock in the client's firm, and so on are all examples of threats
In the new AICPA Code, two conceptual frameworks;
The conceptual framework strategy is one manner in which warnings to completely comply with rules originating from a specific link or condition that are not covered by the code can be;
Therefore, Option C) "Understand the rules of confidential client information and professional misconduct." is the correct answer.
To know more about these frameworks, click below:
Members should use the AICPA conceptual framework for independence to understand the rules on the confidential client information and acts discreditable to the profession.
Option C
Explanation:
Two conceptual frameworks, one each for participants in public accounting and one for participants in the sector, represent a major change to substance in the updated AICPA Code.
In all of these two implementation frameworks, the conceptual framework strategy is one way in which warnings to fully comply with rules arising from a specific connection or circumstance which are not covered by the code can be identified, assessed and addressed.
Answer:
D. decreasing returns to scale.
The answer and procedures of the exercise are attached in the image below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.