BUSINESS COLLEGE

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $24,525. Clayborn's May bank statement shows $21,800 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 7,450 Outstanding checks $ 6,100 Bank service fees, not yet recorded by company $ 100 A NSF check from a customer, not yet recorded by the company $ 1,275 The adjusted cash balance should be:

Answers

Answer 1
Answer:

Answer:

Clayborn Company

The adjusted cash account balance (debit) should be:

$23,150

Explanation:

a) Data and Calculations:

Cash account balance (debit) $24,525

Bank Statement balance $21,800

Reconciliation issues:

Deposit in transit $ 7,450

Outstanding checks $ 6,100

Bank service fees, not yet recorded by company $ 100

A NSF check from a customer, not yet recorded by the company $ 1,275

b) Adjusted Cash balance:

Cash account balance (debit)  $24,525

NSF check                                     (1,275)

Bank service fees                           (100)

Adjusted cash balance (debit) $23,150

c) Adjusted Bank Statement balance:

Bank Statement balance   $21,800

Deposit in transit                   7,450

Outstanding checks             (6,100)

Adjusted bank statement $23,150
Answer 2
Answer:

Final answer:

The adjusted cash balance is calculated by adjusting the company's book balance for deposits in transit and outstanding checks, and then subtracting the bank service fees and the amount of the NSF check. The final adjusted cash balance for Clayborn Company on May 31 is $24,500.

Explanation:

To determine the adjusted cash balance for Clayborn Company, we must consider the cash balance according to the company's books, the deposit in transit, the outstanding checks, the bank service fee, and the NSF check. The books report a debit balance of $24,525, but we need to adjust this amount for the deposit in transit and the outstanding checks. Adding the deposit in transit of $7,450 gives us $31,975. Subtracting the outstanding checks of $6,100 results in an adjusted balance of $25,875.

Next, we have to account for the bank service fees and the NSF check from a customer, both of which were not yet recorded by the company. The bank service fees of $100 and the NSF check of $1,275 decrease our balance, so subtracting these from the $25,875 gives us the final adjusted cash balance of $24,500.

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Answers

Answer:

Option (D) is correct.

Explanation:

Given that,

Money income earned as a swimming assistant coach at university = $15 per hour

Admission fee for the county fair = $9

Here, the opportunity cost of skipping the practice is the loss of money income from the coaching.

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Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $154,500, allowance for doubtful accounts of $1,165 (credit) and sales of $1,175,000. If uncollectible accounts are estimated to be 0.5% of sales, what is the amount of the bad debts expense adjusting entry?

Answers

Answer:

$4,710

Explanation:

The computation of bad debts expense adjusting entry is shown below:-

Bad debts expense adjusting entry = Sales + Uncollectible allowances - Balance in allowance for doubtful accounts

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= $4,710

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(Being bad debt account is recorded)

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Answers

Answer:

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Answers

Answer:

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Answers

Answer:

Contribution margin = $211,150

Contribution margin ratio = 31.19%

Explanation:

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Answers

Answer:

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Explanation:

Calculation for the annual cash flows

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Second step is to calculate the present value annuity factor

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Let plug in the formula

PVIFA = [1 – (1 + 0.036)-10]/ 3.6%

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Last step is to calculate the annual cash flows

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Let plug in the formula

Annual cash flows = $111,193.4656/ 8.27484404349

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