Question

In: Accounting

1. Accompanying the bank statement was a credit memo for a short-term note collected by the...

1. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts? a.debit Cash; credit Notes Receivable and Interest Revenue b.debit Notes Receivable; credit Cash c.debit Accounts Receivable; credit Cash d.debit Cash; credit Miscellaneous Income

2. Use the information below to answer the following question. The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $60 First purchase 25 units at $65 Second purchase 30 units at $68 Third purchase 15 units at $75 The firm uses the periodic system, and there are 25 units of the commodity on hand at the end of the year. What is the amount of inventory at the end of the year rounded to the nearest dollar using the average cost method? a.$1,575 b.$1,805 c.$3,705 d.$1,685

3. "To maintain public confidence and trust in the financial reporting of companies" is the purpose of a.Sarbanes-Oxley b.GAAP c.the FASB d.the IRS

Solutions

Expert Solution

1.

The journal entry to record the transaction is :

==> Therefore, Option a is correct.

2.

==> Weighted-average cost per unit = Total cost / Total units = $5,390 / 80 = $67.375 per unit.

==> Cost of ending inventory = $67.375 X 25 units = $1,684.375 = $1,685

Therefore, option d is correct.

3.

==> "To maintain public confidence and trust in the financial reporting of companies" is the purpose of Sarbanes-Oxley Act (SOX). Because it requires documentation and verification of internal control procedures and increased emphasis on effectiveness of internal control. Failure to comply with SOX can lead to financial penalties, stock market delisting, and criminal prosecution of executives.

Therefore, Option a is correct.


Related Solutions

Accompanying the bank statement was a credit memo for a short-term note collected by the bank...
Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts? debit Notes Receivable; credit Cash debit Cash; credit Miscellaneous Income debit Cash; credit Notes Receivable and Interest Revenue debit Accounts Receivable; credit Cash
Which of the following is typically the largest source of short-term credit for a firm? bank...
Which of the following is typically the largest source of short-term credit for a firm? bank loans trade Credit factoring asset-backed public offerings
1. what is the difference between classification of a note as short term or long term?...
1. what is the difference between classification of a note as short term or long term? 2. at the beginning of year 1, B Co, has a note of $72,000 that calls for an annual payment of $16,246, which includes both principal and interest rate is 8 percent, what is the amount o finterewst expense in year 1 and in year 2? what is the balance of the note at the end of year 2? 3. What is the purpose...
You are given selected information about a bank. Write a short memo or report that: 1)...
You are given selected information about a bank. Write a short memo or report that: 1) Creates a balance sheet and an income statement for the bank that puts the items in their proper order and category. 2) Find the ROAA and ROAE for the bank Information:   Bank Premises & Fixed Assets $50m Interest Income from Leases $5m Investments $30m Interest Payment on Deposits $30m Interest-Bearing Deposits $700m Equity Capital $120m Cost of Premises and Equipment $12 Non-Interest-Bearing Deposits $100m...
a. What is short-term credit, and what are the major sources of credit? b Is there...
a. What is short-term credit, and what are the major sources of credit? b Is there a cost to accrued liabilities? Fully explain your rationale. c. What control do the company's have over accrued liabilities? d. SPP is considering using secured short-term financing. What is a secured loan? What types of current assets can be used to secure the loans? e. What are the differences between pledging receivables and factoring receivables?
5a. Trapezoid Company signed a short-term, one year, note to borrow $10,000 from Cash Bank on...
5a. Trapezoid Company signed a short-term, one year, note to borrow $10,000 from Cash Bank on April 1, 2017. The interest on the note was 12 percent per year. The principal and interest on the note will be payable on the maturity date of March 31, 2018. What entry should Trapezoid Company make on: April 1, 2017; December 31, 2017; and March 31, 2018? 5b. Pragmatic Company manufactures a specialty car wax that sells for $10 per can. Pragmatic Company’s...
Chase Bank account division has collected data on the age of credit accounts. The data collected...
Chase Bank account division has collected data on the age of credit accounts. The data collected indicate that the age of the accounts follows a normal distribution with mean 18 years and standard deviation 6 years. a. What proportion of the accounts are between 20 and 32 years old? b. What is the number of years in which 75% of all accounts are above?
1. CVS indicates in Note 1 that it has some short-term investments that consist of certificates of deposit (CDs).
Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material also is available under the Investor Relations link at the company’s website (www.target.com). Target does not have investments in stock or bonds. However, CVS Health Corp., which purchased Target’s pharmacy and clinical business during 2015, does have some investments. Access CVS’s 2017 10K (issued on February 14, 2018) at investors.cvshealth.com to answer...
what short term and long term issues pose an immediate threat when establishing credit?
what short term and long term issues pose an immediate threat when establishing credit?
Describe the four long-term and two short-term determinants of exchange rates. Note that you need to...
Describe the four long-term and two short-term determinants of exchange rates. Note that you need to do more than simply list the determinants. You need to explain how and why they impact on exchange rates and give examples.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT