The Cash account of First on AlertSecurity Systems reported a balance of $ 2 comma 430at December31​,2018.There were outstanding checks totaling $ 1 comma 000and a December31 deposit in transit of $ 200.The bank​ statement, which came from ParkCities​ Bank, listed the December31balance of $ 3 comma 910.Included in the bank balance was a collection of $ 690on account from Jane Lindsey​,a First on Alertcustomer who pays the bank directly. The bank statement also shows a $ 20service charge and $ 10of interest revenue that First on Alertearned on its bank balance. Prepare First on Alert​'sbank reconciliation at December31.

Answers

Answer 1
Answer:

Answer:

First on Alert​'s bank reconciliation at December 31, 2018

Cash Account First on Alert Security Systems  

Balance , December 31,2018  $2,430

Add: Collection from Jane Lindsey $690  

Add: Interest revenue  $10

Less:-Service charges  $20.00

Adjusted Cash Account balance December 31, 2018  $3,110.00

Bank Account at Park Cities

 

Balance , December 31,2018  $3,910

Add: Deposit in transit  $200

Less: Outstanding cheque $1,000

Adjusted bank balance December 31, 2018  $3,110.00


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3. If the average price of an airline ticket on a certain route rises from $200 to $250, the number of tickets sold drop from 800 to 600. Calculate the price elasticity of demand. Is the demand elastic or inelastic?
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From Jan. 1, 1960 to Jan. 1, 1985, the historical average annual rate of return in the hypothetical country of Westeros was 12%. The annual standard deviation of the rate of return is 10%. What is the upper bound of the 95.4% confidence interval for the annual rate of return based on this information?a. 16%. b. 10%. c. 12%. d. 14%. e. 8%.

Which of the following is not an obstacle to achieving environmental efficiency through markets? Select one: a. Transactions costs. b. Income effects. c. Free-rider problems. d. Private negotiations.

Answers

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.

After extrapolating the results of performing substantive tests on a sample of accounts from the accounts receivable subsidiary ledger, Allen CA concluded that the accounts receivable balance was materially misstated. In fact, the balance was materially correct. This situation illustrates the risk of:A.Incorrect rejection.B. Incorrect acceptance.C. Assessing control risk too low.D. Assessing control risk too high

Answers

Answer: A. Incorrect rejection

Explanation:

INCORRECT REJECTION, in accounting, is the risk the sample supports the conclusion that the recorded balance is materially misstated when it is not materially misstated.

Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $ 250,000 Actual fixed overhead cost for the year $ 254,000 Budgeted direct labor-hours (denominator level of activity) 25,000 Actual direct labor-hours 27,000 Standard direct labor-hours allowed for the actual output 26,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Fixed portion of the predetermined overhead rate to 2 decimal places.) 2. Compute the fixed overhead budget variance and volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.)

Answers

Answer:

1. The fixed portion of the predetermined overhead rate for the year is $10,000 per direct labor hour.

2. The fixed overhead budget variance is $4,000 unfavourable and the fixed overhead volume variance is $10,000 favourable.

Explanation:

In order to calculate the the fixed portion of the predetermined overhead rate for the year we would have to use the following formula:

predetermined overhead rate for the year=Total fixed overhead cost year

                                                                          Budgeted direct labor-hours

                                                                     =$ 250,000/25,000

                                                                      =$10,000

1. The fixed portion of the predetermined overhead rate for the year is $10,000 per direct labor hour.

In order to calculate the fixed overhead budget variance, we use the following formula:

2. fixed overhead budget variance=Actual fixed overhead cost for the year- budgeted fixed overhead cost for the year

                                                     =$ 254,000-$ 250,000

                                                     =$4,000 unfavourable

In order to calculate the fixed overhead volume variance, we use the following formula:

fixed overhead volume variance=budgeted fixed overhead cost for the year-fixed overhead appliead to work in process

                                                     =$ 250,000-(26,000×10)

                                                     =$10,000 favourable

Harris Company had checks outstanding totaling $15,400 on its May bank reconciliation. In June, Harris Company issued checks totaling $64,900. The June bank statement shows that $37,600 in checks cleared the bank in June. A check from one of Harris Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Harris Company's June bank reconciliation should be ____.

Answers

Answer:

$42,700

Explanation:

The presentation of bank reconciliation is shown below:-

Check outstanding in June beginning     $15,400

Add: Check issued                                     $64,900

Total check to be cleared                          $80,300

Less: Check cleared                                     $37,600

The Outstanding amount of checks issued $42,700

The Macro Islands can produce either 250 bamboo towels or 500 botanical soaps using all its resources. The Micro Islands can produce either 30 bamboo towels or 300 botanical soaps using all its resources. Based on this information, which of the following is true?The Macro Islands have a comparative advantage in producing both goods.
The Micro Islands have a comparative advantage in producing neither good.
The Micro Islands have a comparative advantage in producing bamboo towels.
The Micro Islands have a comparative advantage in producing botanical soaps.
The Micro Islands have a comparative advantage in producing both goods.

Answers

Answer:

The Micro Islands have a comparative advantage in producing botanical soaps.

Explanation:

Comparative advantage can be defined as the ability of an economy to produce a good at lower opportunity cost than other economies. This enables the economy sell the product at lower prices, therefore having higher margin of profit than other economies.

The opportunity cost of Micro Island in producing 300 botanical soaps is the cost of producing 30 bamboo towels. The opportunity cost is quite low.

While for Macro Island the opportunity cost of producing 500 botanical soaps is 250 bamboo towels. The opportunity cost is higher than for Micro Island.

An inferior good is Multiple Choice A. one whose demand curve will shift rightward as incomes rise.

B. not accurately defined by any of these statements.

C. one that has not been approved by the Federal Food and Drug Administration.

D. one whose price and quantity demanded vary directly.

Answers

Answer:

B. not accurately defined by any of these statements.

Explanation:

An inferior good is defined as one whose the quantity demanded decreases as the income of its consumers increases and vice versa.

Option A is incorrect because the income elasticity for inferior goods is negative and therefore, as the income of the consumers increases, the demand curve shifts to the left.

Option C is incorrect because an inferior good does not necessarily mean a fake good. A good can be inferior but yet meet all the standards for approval by the FDA.

Option D is incorrect. The price and quantity demand for inferior goods, just like normal goods do not vary directly. This is only applicable to luxurious goods.

None of the statements in A, C, and D accurately defined an inferior goods.

Hence, the correct option is B.

Answer:

B. not accurately defined by any of these statements.

Explanation:

Inferior goods are goods whose demand decreases as the consumers income increases. This is different for normal goods in that the more the consumer earns, the more he/she tends to buy.

As such, inferior goods are not necessarily goods that has not been approved by the Federal Food and Drug Administration.

For Inferior goods, prices and quantity demanded do not vary proportionately.

Furthermore, the demand curve for an inferior good shifts out (rightward) when income decreases and shifts in when income increases.

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