A network externality occurs when: Select one: A. there is production cost savings from being networked with suppliers B. the usefulness of a good is affected by how many others use the good C. the usefulness of a good is affected by celebrities who use the good D. there is production cost savings from being networked with buyers. Clear my choice Previous page

Answers

Answer 1

Answer:

B

Explanation:


Related Questions

If a company has discriminated against minorities in the past, should it be required to give priority to minority applicants today? Why or why not?

Answers

Answer:

The description as per the given statement is summarized in the below segment.

Explanation:

There should priorities immigrants, although it has its inherent consequences since it damages the morality of all other project teams and thereby discourages them.This would also dissuade customer prejudice from purchasing the merchandise of the company and then so this might not be beneficial to priorities it.

RSTN Co. produces its product through two sequential processing departments. Direct materials and conversion are added to the product evenly throughout the process. The company uses monthly reporting periods for its process costing system. During October, the company finished and transferred 150,000 units of its product to Department 2. Of these units, 30,000 were in process at the beginning of the month and 120,000 were started and completed during the month. The beginning work in process inventory was 30% complete. At the end of the month, the work in process inventory consisted of 20,000 units that were 80% complete.

Required:
Compute the number of equivalent units of production for October. Use the FIFO method.

Answers

Answer:

RSTN Co.

The number of equivalent units of production for October are:

                                                        Materials              Conversion

Equivalent units of production       140,000                   157,000

Explanation:

a) Data and Calculations

                                                 Units         Materials              Conversion

Beginning work in process      30,000        100%                         30%

Units started and completed 120,000        100%                        100%

Ending work in process          20,000         100%                         80%

Equivalent units using FIFO method:

                                                 Units         Materials              Conversion

Beginning work in process      30,000        0 (0%)                 21,000 (70%)

Units started and completed 120,000 120,000 (100%)       120,000 (100%)

Ending work in process          20,000   20,000 (100%)         16,000 (80%)

Equivalent units of production             140,000                   157,000

The following data represents number of customers arriving at Quick Lube for an oil change between 9 and 11 AM over the past 6 days.

Day 1 2 3 4 5 6
Customers 34 33 35 36 36 37

Required:
Using the Naive Method, how many customers would you forecast for Day 7?

Answers

Answer:

37

Explanation:

The naïve technique of forecasting is a simple forecasting technique that is used among time series data. in this type of forecasting, we use the actual figure in the last period to make a forecast for the next period that follows it.

In this question, the last day is day 6, and the number of customer on this day is 37. With the explanation in the paragraph above, the forecast for day 7 is still going to be 37 customers, given that day 7 follows day 6, which was the last period.

Travel expenses incurred by the sales department of a manufacturing company would be classified as: a. indirect labor b. manufacturing overhead c. a period cost d. a conversion cost e. a product cost

Answers

Answer:

c. a period cost

Explanation:

Option C, period cos is the correct answer because the period cost is not related to the production and manufacturing of the commodity. Rather it is the cost incurred outside the factory such as marketing expenses, travelling expenses, etc. Therefore, the option "period cost" is the correct answer.  

Travel expenses incurred by the sales department of a manufacturing company would be classified as: c. a period cost

Period costs are indirect costs incurred in the production of goods and services. These costs are not tied directly to production processes.

Unlike product costs that are assigned to one particular product, Period costs are not assigned to one particular product or the cost of inventory.

Period costs are also not included in the inventory valuation hence are treated as expenses in the period in which they are incurred.

Other examples of Period costs includes: marketing expenses, indirect labor etc.

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Deluxe Company expects to pay a dividend of $2 per share at the end of year-1, $3 per share at the end of year-2 and then be sold for $32 per share. If the required rate on the stock is 15%, what is the current value of the stock

Answers

Answer:

i need this too just like you

How do you feel when you buy a product that is overpriced?​

Answers

I feel kind of worried because you are paying to much and maybe if you need to pay rent for your house you won’t have enough money so I get worried to have that.

Hope this helps :)

On August 1, Lola Company’s assets are $30,000 and its liabilities are $10,000. On August 4, Lola issues a sustainability report. On August 5, ownership invests $3,000 cash and $7,000 of equipment in Lola. After the investment, what is the amount of equity for Lola?

Answers

Answer: $30,000

Explanation:

Before the investment, Equity was:

= Assets - Liabilities

= 30,000 - 10,000

= $20,000

The owner then invested $3,000 and $7,000 therefore making a total of $10,000.

Equity becomes

= 20,000 + 10,000

= $30,000

The equity is $30,000

Lola's company assets are $30,000

The liabilities are $10,000

Equity= $30,000-$10,000

= $20,000

On August 5, ownership invests $3,000 in cash and $7,000 in equipment

= $3,000+$7,000

= $10,000

The amount of equity for Lola is

= $20,000+$10,000

= $30,000

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MC Qu. 111 A company has an overhead application... A company has an overhead application rate of 124% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $23,000

Answers

Answer:

$28,520

Explanation:

Calculation to determine How much overhead would be allocated to a job if it required total labor costing $23,000

Using this formula

Overhead=Total Labor Cost x Overhead Application Rate

Let plug in the formula

Overhead=$23,000 x 1.24

Overhead= $28,520

Therefore How much overhead would be allocated to a job if it required total labor costing $23,000 will be $28,520

If you wanted to build a structure on a river bank, you should build the structure __________ to maximize its lifetime.

Answers

Answer:

Above the point bar

Explanation:

channelization

Straightened sections of the river channel are lined with concrete to increase the rate of flow and reduce bank collapse

Advantages of channelization

Improves rate of flow

Benefits transportation

Reduces bank collapse

Suppose Baa-rated bonds currently yield 6.1%, while Aa-rated bonds yield 4.1%. Now suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1.0%. What would happen to the confidence index? (Round your answers to 4 decimal places.)

Answers

Answer:

Confidence index increases from 0.6721 to 0.7183

Explanation:

The computation of the confidence index is shown below:

Initial Confidence Index is

= Aa-rated bonds yield ÷ Baa-rated bonds yield

= 4.1% ÷ 6.1%

= 0.6721

Since the yields on both bonds increase by 1.0%

So, the confidence index after increase in yield is

= (4.1% + 1%) ÷ (6.1% + 1%)

= 0.7183

So,  Confidence index increases from 0.6721 to 0.7183

On June 1, $40,000 of treasury bonds were purchased between interest dates. The broker commission was $600. The bonds pay interest at 12%, which is paid semiannually on January 1 and July 1. How much interest revenue will be recorded on July 1?
a. $400.
b. $2,000.
c. $2,400.
d. $406.

Answers

Answer: $400

Explanation:

The amount of interest revenue that will be recorded on July 1 will be calculated thus:

Interest revenue = Face value × Interest percentage × 1/12

= $40,000 × 12% × 1/12

= $40000 × 0.12 × 0.08333

= $400

Therefore, the interest revenue that will be recorded on July 1 is $400.

A startup jewelry company wants to research designs from its potential new jewelry line. It has little money to devote to the research. Which combination of research methods would best suit its situation

Answers

Answer:

Mail and online research.

Explanation:

Since in the given situation, it can be seen that the company does not have much amount to be incurred on the research so the best option is to do online research and mail as the person research and the telephone research becomes expensive as compared to the mail and online research

Therefore the above should be the answer

Bach Co. had an inventory balance of $15,250 on January 1, purchased $34,000 during the accounting period, and the cost of goods sold was $28,000. What is the ending balance in the inventory account (the cost of ending inventory)

Answers

Answer:

$21,250

Explanation:

Calculation to determine the ending balance in the inventory account

Using this formula

Cost of goods sold =​ Opening Inventory + Purchase during the year - Ending balance of inventory

Let plug in the formula

$28,000 = $15,250 + $34,000 - Ending balance of inventory

Ending balance of inventory = $49,250 - $28,000

Ending balance of inventory = $21,250

Therefore the ending balance in the inventory account is $21,250

NBS Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR

Answers

Answer:

13.50%

Explanation:

Please find attached an image showing r and the cash flows

MIRR = (Future value of a firm's cash inflow / present value of the firm's cash outflow)^ (1/n)  - 1

n = number of years

present value of the firm's cash outflow = $800

Future value of a firm's cash inflow

Future value of year 1's cash flow = 350 x (1.11^2) =  $431.24

Future value of year 2's cash flow =  350 x (1.11^1) = $388.50

Future value of year 3's cash flow = $350

Add the future values together = 1169.74

MIRR = [(1169.74 / 800)^(1/3)] - 1 = 0.1350 = 13.50%

All standard costing methods use the predetermined overhead rate to apply factory overhead. This is based on an estimated amount that is calculated during the budgeting process at the beginning of the year. Therefore, there will almost always be a variance between the factory overhead that is applied and the actual factory overhead that is accumulated. These variances should be a minimal amount, but may sometimes be material. Therefore, it is important that an accountant find the cause of the variance, so as not to repeat it. Determining the reasons for variances is an important part of the overall process of variance analysis. Certain causes are commonly attributed to specific variances. Match each reason on the left with the variance(s) it commonly creates. Each numbered item has one or more correct answer(s). Each lettered item may be used once, more than once, or not at all.
1. A change in the quality of materials purchased
2. A new supplier contract
3. Error in the accounting records
4. Change in proportion of spoiled materials
5. Unreasonable standard
6. Unanticipated overtime hours
7. A change in the government-mandated minimum wage
8. Equipment malfunction
9. A change in average worker experience or training
A. Direct materials price variance
B. Direct materials quantity variance
C. Direct labor rate variance
D. Direct labor efficiency

Answers

Answer:

1. A change in the quality of materials purchased

Variance: Direct materials quantity variance

2. A new supplier contract

Variance: Direct materials price variance

3. Error in the accounting records

Variance: Direct materials price variance

4. Change in proportion of spoiled materials

Variance: Direct materials quantity variance

5. Unreasonable standard

Variance: Direct labor efficiency

6. Unanticipated overtime hours

Variance: Direct labor rate variance

7. A change in the government-mandated minimum wage

Variance: Direct labor rate variance

8. Equipment malfunction

Variance: Direct labor efficiency

9. A change in average worker experience or training

Variance: Direct labor efficiency

S Corporation makes 41,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 10.00 Direct labor $ 9.00 Variable manufacturing overhead $ 3.70 Fixed manufacturing overhead $ 4.65 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to S Corporation for this motor is $25.45. If S Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:

Answers

Answer:

$112,750

Explanation:

Particulars                                Cost of making               Cost of buying

Direct material                       41,000*10=410,000                  0

Direct labor                            41,000*9=369,000                   0

Variable manuf. overhead    41,000*3.70=151,700                0

Fixed manuf. overhead         41,000*4.65=190,650    41,000*4.65=190,650

Outside supplier's price                      0                        41,000*25.45=1,043,450

Total cost                                      $1,121,350                      $1,234,100

Financial advantage of making the motors = $1,234,100 - $1,121,350

Financial advantage of making the motors = $112,750

Claire purchases a $125 suit on her credit card from a local clothing store in her hometown. When she takes it home, she realizes it is damaged. She tries to take the product back for a full refund or store credit, but the store refuses. In this situation, ____________________.

Answers

Answer: the store violate TILA

Explanation:

The Truth in Lending Act of 1968 refers to the federal law that's designed in order to promote how the consumer credit will be used as there should be disclosures regarding terms and cost.

The Act is vital in protecting the consumers from misleading practices and provides them with necessary information about the costs of credit. Based on the information given, the store violates TILA.

The short-run cost function of a company is given by the equation TC=10000+50q, where TC is the total cost and q is the total quantity of output.

a. What is the company's fixed cost?
b. If the company produced 2,000 units of goods what would be its average variable cost?
c. What would be its marginal cost of production?
d. What would be its average fixed cost?
e. Suppose the company borrows money and expands its factory. Its fixed cost rises by $5,000 but its variable cost falls to $45/unit. The cost of interest also enters the equation. Each 1 point increase in the interest rate raises costs by $250. Write the new cost equation.

Answers

Answer:

a. 10000

b. 50

c. 50

d. 5

e. TC = 15000+5Q+250r

Explanation:

TC = 10000+50Q

a. the fixed cost Is 10000

b. variable cost, VC = 50Q

at q =2000 units,

average variable cost = [tex]\frac{VC}{Q}[/tex]

= 50Q/Q

= 50

C. Marginsal cost = d(tc)/dq = 50

d. the average fixed cost = 10000/q

= 10000/2000

= 5

e. the final cost would be = 10000+5000= 15000

the variable cost woul be calculated as= (50-45)Q = 5Q

Interest rate = 250r

the new cost equation = TC = 15000+5Q+250r

You purchased two WXO 30 call option contracts at a quoted price of $.35. What is your net gain or loss on this investment if the price of WXO is $33.70 on the option expiration date

Answers

Answer: $670

Explanation:

Since the quoted price of $.35, the cost to purchase two WXO 30 call option will be: = $0.35 × 2 = $0.70

Then, the price of RADM 30 call option contract will be calculated as;

= $33.7 - $30

= $3.70

The net gain on one RADM 30 call option will then be:

= $3.70 - $0.35

= $3.35.

Therefore, the net gain on 2 RADM30 call options will be:

= $3.35 × 2

= $6.70

Since there are 100 shares in a option contract, the gain will be:

= $6.70 × 100

= $670

The yield on a three-month T-bill is 3.29%, and the yield on a 10-year T-bond is 4.67%. the market risk premium is 6.17%. The Allen Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Allen’s cost of equity is

Answers

Answer:

10.35 %

Explanation:

Using the Capital Asset Pricing Model (CAPM) approach, Allen’s cost of equity is

Cost of Equity = 4.67% + 0.92 x 6.17%

                         = 10.35 %

Open market operations refer to the buying and selling of ________ by the ________ to control the money supply. stocks and bonds; Federal Reserve Treasury securities; Treasury Department Treasury securities; Federal Reserve stocks and bonds; Treasury Department

Answers

Answer:

Open market operations refer to the buying and selling of Treasury securities by the Federal Reserve to control the money supply.  

RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. RST desires to earn a profit of $20,000. The sales level in units to achieve the desire profit is A company that sells multiple types of products has a selling price per composite unit of $150, variable cost per composite unit of $50 and total fixed costs of $25,000. The contribution margin per composite unit is:__________

Answers

Answer:

The correct answer is "12,500 units" and "$100 per unit".

Explanation:

Given:

Selling price,

= $10 per unit

Variable cost per unit,

= $6 per unit

Fixed cost,

= 30,000

Desired profit,

= 20,000

Now,

The contribution margin per unit will be:

= [tex]Selling \ price - Variable \ cost[/tex]

= [tex]10-6[/tex]

= [tex]4[/tex] ($) per unit

The required units will be:

= [tex]\frac{(Fixed \ cost+Desired \ profit)}{Contribution \ margin}[/tex]

= [tex]\frac{30000+20000}{4}[/tex]

= [tex]\frac{50000}{4}[/tex]

= [tex]12,500 \ units[/tex]

Now,

The contribution margin per composite unit will be:

= [tex]Selling \ price-Variable \ cost[/tex]

= [tex]150-50[/tex]

= [tex]100[/tex] ($) per unit

Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at the end of next year. The company’s earnings’ and dividends’ growth rate are expected to grow at the constant rate of 8.70% into the foreseeable future. If Alpha Moose expects to incur flotation costs of 5.00% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be

Answers

Answer:

Alpha Moose Transporters

If Alpha Moose expects to incur flotation costs of 5.00% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be:

= $30.84.

Explanation:

a) Data and Calculations:

Current stock price = $33.35 per share

Dividend per share = $1.36

Flotation costs =  5.00%

Flotation-adjusted stock price = $31.68 ($33.35 * 0.95)

Expected dividend growth rate = 8.70%

Expected rate of returns = 4.29% ($1.36/$31.68 * 100)

Cost of new common stock = Dividend per share/(Expected rate of returns - Dividend growth rate)

= $1.36/(0.0429 - 0.087)

= $1.36/0.0441

= $30.84

A company purchased office supplies costing $5,000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $900 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be: debit Supplies Expense, $4,100; credit Supplies, $4,100. debit Supplies, $4,100; credit Supplies Expense, $4,100. debit Supplies Expense, $5,900; credit Supplies, $5,900. debit Supplies, $900; credit Supplies Expense, $900.

Answers

Answer:

Debit Supplies Expense, $4,100; Credit Supplies, $4,100

Explanation:

Based on the information given The appropriate adjusting journal entry to be made at the end of the period would be:Debit Supplies Expense, $4,100; Credit Supplies, $4,100

Debit Supplies Expense $4,100

Credit Supplies $4,100

($5,000-$900)

Agan Interiors provides home and office decorating assistance to customers. In normal operation 2.5 customers arrive per hour. One design consultant answers problems. The consultant averages 10 minutes per customer. Arrivals follow a Poisson distribution and the service times are exponentially distributed.

Required:
a. Compute the operating characteristics of the customer waiting line, assuming Poisson arrivals and exponential service times.
b. Service goals dictate that an arriving customer should not wait for service more than an average of 7 minutes. Is this goal being met? If not, what action do you recommend?
c. If the consultant can reduce the average time spent per customer to 9 minutes, what is the mean service rate?

Answers

Explanation:

we find the mean service rate at 10 minutes

= 60/10 = 6 min per hour

λ = 2.5

a.

1. we find the average number that are waiting in line

Lq = 2.5²/6(6-2.5)

= 6.25/21

= 0.2976

2. we find the average customers that are in this system

= 2.5²/6(6-2.5) + 2.5/6

= 0.2976 + 0.4167

L = 0.714266

approximately 0.7143

3. we have to determine the average time that a customers stays waitong

= Lq/λ

= 0.2976/2.5

= 0.11904 hours.

we convert this to minutes

= 0.11904 x 60

Wq = 7.1424 minutes

4. we find the average time that a customer is going to stay in the system

= 7.1424 + 60/6

w = 17.14 minutes

b. this goal is not being met here. This is because the service wait time is 7.14 minutes which is greater than 7 minutes. In order for them to  meet this goal, they either have to hire other consultants or they have to raise their mean service rate.

c. mean would be =

60/9 = 6.67 per hour

Wq = 2.5/6.67(6.67-2.5)

= 2.5/27.814

= 0.0899 hour

= 0.0899*60

= 5.4 minutes

Beginning three months from now, you want to be able to withdraw $2,700 each quarter from your bank account to cover college expenses over the next four years. If the account pays .67 percent interest per quarter, how m

Answers

Answer:

PV= $40,835.6

Explanation:

Giving the following information:

Quarterly withdrawal (A)= $2,700

Number of periods= 4*4= 16 quarters

Interest rate= 0.67% per quarter

To calculate the initial investment, we need to use the following formula:

PV= A*{(1/i) - 1/[i*(1 + i)^n]}

PV= 2,700*{(1/0.0067) - 1 / [0.0067*(1.0067)^16]

PV= $40,835.6

What are the advantages or disadvantages of creating a hypothesis without adequate research?

Answers

When does advantage is stating a hypothesis may lead to bias other consciously or unconsciously on the part of the researcher this because the researcher may be tempted to arrange the procedures or manipulate the data set in such a way as to bring about the desired outcome and advantage is it represents by researchers expect to find in a study or experiment.

Hypothesis can defined as a guess or predicted outcome of a scientific

process.

The advantage of creating a hypothesis without adequate research include

the following:

Complex calculationsAmbiguity

The disadvantage of creating a hypothesis without adequate research

include the following:

ValidityReliability

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Lighting design personnel must: A. Understand environmental, cost, and associated benefits of energy-efficient lighting B. Recognize when specialized knowledge is necessary C. Estimate energy cost savings D. All of the above

Answers

Answer: All of the above

Explanation:

The Lighting Design Personnel is in charge of the designing, the installation, and the operation of lighting and every other special electrical effects.

Such person must understand environmental, cost, and associated benefits of energy-efficient lighting. Also, he or she must be bake to recognize when specialized knowledge is necessary and also estimate energy cost savings

Therefore, the correct option is all of the above.

The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave’s two options follows:
Rosa Umbrella Decorated Umbrella
Estimated demand 10,000 units 10,000 units
Estimated sales price $ 8.00 $ 19.00
Estimated manufacturing cost per unit
Direct materials $ 2.50 $ 5.50
Direct labor 1.50 4.00
Variable manufacturing overhead 0.50 2.50
Fixed manufacturing overhead 2.00 2.00
Unit manufacturing cost $ 6.50 $ 14.00
Additional development cost $ 10,000
Required:
1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations.
Rosa umbrella Decorated Umbrella Incremenral
sales revenue
variable cost
contribution margin
additional development cost
differential profit
2. Should Mohave add decorations to the Rosa umbrella?
Yes
No
3-a. Suppose that the higher price of the decorated umbrella is expected to reduce estimated demand for this product to 8,000 units. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations.
Rosa Umbrella Decorated Umbrella Incremental
sales revenue
variable cost
contribution marginal
additional development cost
differential profit
3-b. Should Mohave add decorations to the Rosa umbrella?
Yes
No

Answers

Solution :

1. Incremental analysis when the demand for the decorated umbrella is 10,000 units.

[tex]\text{Particulars}[/tex]                 [tex]\text{Rosa umbrella}[/tex]     [tex]\text{Decorated umbrella}[/tex]          [tex]\text{Incremental}[/tex]

[tex]\text{Sales revenue}[/tex]             $80000                 $190000                       $110000

[tex]\text{Less: Variable cost}[/tex]     $ 45000                $120000                       $75000

Contribution                $35000                 $70000                         $35000

[tex]\text{Less: Additional}[/tex]            ---                          $10000                         $10000

development cost.

[tex]\text{Differential profit}[/tex]         $35000                 $60000                        $25000

The company earns an additional profit of [tex]\$25,000[/tex] if it decorates and sells the Rosa umbrella.

2. The company, Mohave should add the decorations to the Rosa umbrella as this would increase the net revenues of the company by an amount of $25,000.

3.a. The demand for he decorated umbrella will fall to 8,000 units due to the higher price. If the company does not make any changes to the Rosa umbrella, it could sell 10,000 units.

The incremental profit or loss is :

Incremental analysis when the demand for the Rosa umbrella is 10,000 units and for the decorated umbrella is 8,000 units is given below:

[tex]\text{Particulars}[/tex]                 [tex]\text{Rosa umbrella}[/tex]     [tex]\text{Decorated umbrella}[/tex]      [tex]\text{Incremental}[/tex]

[tex]\text{Sales revenue}[/tex]            $80,000             $152,000                       $72,000

[tex]\text{Less: Variable cost}[/tex]   $45,000              $96,000                       $51,000

Contribution               $35,000              $56,000                      $21,000

[tex]\text{Less: Additional}[/tex]             ----                    $10,000                        $10,000

development cost.

[tex]\text{Differential profit}[/tex]     $35,000                $46,000                        $11,000

The incremental profits are : $11,000.

3.b. The company should decorate and sell 8000 units of the decorated umbrellas as the increase in the net profit is $11,000.

Identify each of the following reconciling items as:

a. an addition to the cash balance according to the bank statement
b. a deduction from the cash balance according to the bank statement
c. an addition to the cash balance according to the company's records
d. a deduction from the cash balance according to the company's records

Item Treatment
1. Bank service charges, $30.
2. Check of a customer returned by bank to company because of insufficient funds, $400.
3. Check for $320 incorrectly recorded by the company as $230.
4. Check for $1,100 incorrectly charged by bank as $110.
5. Deposit in transit, $3,300.
6. Outstanding checks, $7,950.
7. Note collected by bank, $10,500.

Answers

Answer:

Reconciling Items

Item   Treatment

1.    b. a deduction from the cash balance according to the bank statement

2.   b. a deduction from the cash balance according to the bank statement

3.   d. a deduction from the cash balance according to the company's records

4.   a. an addition to the cash balance according to the bank statement

5.   a. an addition to the cash balance according to the bank statement

6.  a. an addition to the cash balance according to the bank statement

7.  a. an addition to the cash balance according to the bank statement

Explanation:

a) Data and Analysis:

1. Bank service charges, $30 Cash $30

2. Accounts Receivable (NSF) $400 Cash $400

3. Accounts Payable $90 Cash $90

4. Cash $990 Bank $990.

5. Bank $3,300 Cash $3,300

6. Cash $7,950 Bank $7,950

7. Cash $10,500 Accounts Receivable $10,500

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