Answered: Commercial bank A lends £1,000 to Mr B,…

Commercial bank A lends £1,000 to Mr B, who uses it to buy a car from Mrs C, paying by bank transfer to Mrs C's account with Commercial Bank D. Total "bank money" has stayed the same.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Written, Inc. has outstanding 300,000 shares of $2 par ordinary shares and 60,000 shares of no-par…

A: Outstanding Shares: 60,000 shares of no-par 8% preference shares Value of Shares: $5 per share…

Q: respectívely. The balances of their capital accounts on December 31, 2011 are as follows: Silverio P…

A: Partnership means where two or more person comes together to do some common business activity and…

Q: If the interest rate is 10%, Julia could borrow up to $91. Is it true or false?

A: Correct answer is true

Q: Goods in transit are included in a purchaser's inventory: Multiple Choice When the supplier is…

A: FOB destination sale: In FOB destination sale freight costs are paid by the seller and ownership is…

Q: Required: Compute the inventory turnover in Year 2. Write answer in whole figure only. 10. Using…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: The auditor is required to document each misstatement identified as "clearly trivial."

A: Trivial misstatement: Trivial misstatement means very small materiality value as 1% to 5% of…

Q: Which of the following is not considered part of M2? a. money market mutual fund shares b. large…

A: Ans. M2 consists of M1 + savings deposits+ money market securities + other time deposits.

Q: Listed below is the inventory, purchases and sales for the month of July 2021: Units RM per unit…

A: Under perpetual inventory system cost of goods sold is recorded simultaneously whereas under…

Q: Question Content Area Use the present value and future value tables to answer the following…

A: Answer:- A Present value is $1,643.79 or $1,644. Computation of present value:- PV = FV / (1+r)^n…

Q: 4 If Joana daily rate is P6,485, compute her overtime pay rate when the overtime work is performed…

Q: Balance at year-end in Service Revenue account. $65.000 Give the h. closing entry at year-end.…

A: Closing entry are passed at the year end to transfer the ending balances of expenses and Revenueto…

Q: ash paid for machine, including VAT of P96,000 ost of transporting machine ost of installation ost…

A: In order to compute capitalized cost of machine, All cost which are directly related bringing the…

Q: FILL - UP THE MISSING AMOUNTS: Sales 3,593,800 Cost of Goods Sold 2,450,300 Gross Profit Expenses…

A: The gross profit is calculated as difference between sales and cost of goods sold. The net income is…

Q: 10) Counte Company's cash balance at the end of the month was $ 5,500. After comparing the company's…

A: Bank reconciliation statement is used to determine the differences between the bank statement…

Q: Required information [The following information applies to the questions displayed below.] A company…

A: Under FIFO Method, using perpetual inventory system, value of ending inventory is calculated after…

Q: 1-3. Are high turnover ratios good or bad?

A: As per the guidelines, only one question is allowed to be solved so I am answering question 1-3.…

Q: Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza…

Q: Mr. and Mrs. Revel had $206,200 AGI before considering capital gains and losses. Required: a. On May…

A: Note: “As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the…

Q: On December 3, Ter Company purchased inventory listed at P4,300 from Yup Corporation. Terms of the…

A: The question is based on the concept of Financial Accounting. Net method is the method under which…

Q: 1.Describe three (3) techniques of constructing accounts from incomplete records

A: Incomplete records are those records for which double entry system is not used. In simple, it is the…

Q: Alta Company is constructing a production complex that qualifies for interest capitalization. The…

Q: Sweet Sixteen has two classes of stock authorized: $10 par preferred, and $1 par value common. As of…

A: The shareholders' equity section represents the total equity that belongs to the owners or…

Q: Required information [The following information applies to the questions displayed below.] A company…

A: Using Weighted Average cost method under perpetual inventory system, value of ending inventory is…

Q: 22. On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a…

A: Faor Value Through the Statement of Other Comprehensive Income [FVTOCI]…

Q: Ogden Corporation has a projected balance sheet that includes the following accounts. What is the…

A: Since basic accounting equation is Total Assets = Total liabilities + Owners equity

Q: 26. Consider a firm that uses labor (L) and capital (K) to produce output. Which of the following…

A: (a) The firm views L and K as close substitute in production is correct.

Q: Calculate the dividends per share on each class of stock for each of the four years. Round all…

A: Dividend refers to that portion of the net income of the company which the company paid to its…

Q: FILL -UP THE MISSING AMOUNTS: Sales CGS GP 40% Expenses 421,800 Net Profit 58,200

A: The gross profit is calculated as difference between sales and cost of goods sold. The operating…

Q: 1. A company makes a sale to a customer on credit and borrows cash (70-90% of the amount of sales)…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: What are the best two measures for the profitability of firms that are not publicly traded?

A: Profitability, rate of return, as well as the pre-tax income are all metrics that would be used to…

Q: Loreal-American Corporation purchased several marketable securities during 2021. At December 31,…

A: Net unrealized loss = Short term loss - Long term gain = $49000 -$22000 =$27000

Q: Shannon Company began operations on January 1, 2020. The financial statement contained the following…

A: Financial statement is the summary showing revenues and expenses, assets and obligations, equities…

Q: Q1// The University of Anbar has purchased equipment for the purposes of the reconstruction campaign…

A: Solution:- Fixed ratio method for extinction :- As per this method the fixed amount is written off…

Q: e A - The cash price of this machine was $38,000. Related expenditures included: sales tax $1,700,…

A: Depreciation Accounting

Q: financial ratios?

A: Ratio is tools to analyse the financial data of an organisation. Some Financial ratio are as Gross…

Q: Carla Vista Manufacturing Company accumulates the following summary data for the year ending…

A: The variance is said to be favorable when actual revenue is more than the budgeted revenue or actual…

Q: Here are comparative financial statement data for Bramble Company and Debra Company, two…

A: Answer 1) Bramble Company Return on Assets Return on Assets = Net Income/ Average Total Assets…

Q: The following figures are for the year 2020: Inventory 1.1.2020 $4000 Inventory 31.12.2020…

A: The gross profit is calculated as difference between sales and cost of goods sold. Cost of goods…

Q: hen purchase costs regularly rise, the inventory costing method that yields the highest reported net…

A: The inventory can be valued using various methods as LIFO, FIFO, average and specific identification…

Q: Reshier Company makes three types of rug shampooers. Model 1 is the basic model rented through…

A: 1. Model 1 Model 2 Model 3 Total Sales 245,000 550,000 619,500 1,414,500 Less: Variable…

Q: E.F. Lynch Company is a diversified investment company with three operating divisions organized as…

Q: How many total units should Emma include in her company's period-end inventory?

A: 1. In case FOB destination, seller is the owner till it reaches the buyer. So, this is part of year…

Q: $285,748,333.00 For the 2022 Season, the LA Dodgers have a projected payroll of: The luxury tax…

A: Luxury tax is sales or transfer tax levied on specific goods. Luxury tax generally levied on non…

Q: QUESTION 2 1. On 1 January 2015, Dinara Enterprise purchased a printing machine for RM90,000 cash.…

A: Fixed assets are assets of a non-current nature that are essential for the performance of a…

Q: t

A: A cash budget is a forecast of a company's cash inflows and outflows over a set period of time, such…

Q: Planned amount A - 100 units, planned amount B - 160 units Actual amoint A - 80 units, actual amount…

Q: 24 - 25Sales for the year amount to PHP100.000, Accounts receivable amount to PHPT2,000. What is the…

A: As per the guidelines, only one question is allowed to be solved so I am answering question 24-25.…

Q: On April 1, Kang Corporation purchased back 250 shares of $1 par value common stock for $20 per…

A: Treasury stock: When shares are purchased from the open market by the company then these shares are…

Q: During this year, board of directors at Munoz Company authorizes repurchase of 100 shares of the…

A: Treasury stock: When shares are bought back by the company from the market is called the Treasury…

Q: K-Tyres Corp. produces two types of tires, regular and snow tires. company uses activity-based…

A: Activity rate = Budgeted cost/Number of basis hours

Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Commercial bank A lends £1,000 to Mr B, who uses it to buy a car
from Mrs C, paying by bank transfer to Mrs C's account with
Commercial Bank D. Total "bank money" has stayed the same.
Select one:
O True
O False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

a. Illustrate and record the following events on a T account John deposits his $10,000 paycheck into his checking account at Chase Bank b.Chase Bank deposits the check at the Fed and Fed collects the funds for Chase Bank c.What happens to a bank's reserves when it receives a deposit? d.John withdraws $2000 cash and pays his rent. His landlord deposits the $2000 in Citi Bank
Suppose a cheque was drawn payable to ‘Badar or order’. it was lost subsequently. Eman found the cheque and presented it to the cashier on the bank counter. Keeping this situation in mind, comment on the following: Will she get the cash? If no, justifyWould your answer be the same, if the cheque was bearer.
5. Mr. Ahmed has purchased goods from Khalid for OMR 1000. Mr. Khalid requested that instead of paying cash, better to issue him a cheque. Mr. Ahmed write a cheque for OMR 1000. Mr. Khalid lost the same cheque while travelling. What procedure is recommended in this situation? Write any four differences between traditional banking and modern banking Why KYC is mandatory for the banks while opening a bank account?
Show how each of the following would initially affect a bank’s assets liabilities. Someone makes $1000 deposit into a checking account. A bank makes a loan of $1000 by establishing a checking account for $1000 The loan described in part (B) is spent. A bank must write off a loan because the borrower defaults.
Q2: Use the following information to prepare a bank reconciliation. Then, make journal entries appropriately. a. Balance per bank statement, RO 8000 b. Balance per books, RO 7200 c. Interest earned on checking account, RO 800 d. Outstanding checks, RO1200 e. NSF check from Mr. Ahmad, RO 185 f. Deposits in transit, RO 2600 g. Bank charged us a check we did not write, RO 500 h. Monthly bank charges, RO 15 i. Error on the books regarding check number 251 – recorded as RO 1000 instead of as RO 300. The debit was to Salary Expense. j. Forgot to record a deposit on the books for RO 600 k. Bank acted as our agent to collect note of RO 800
Mr. Khalid has a current account in a bank with a credit balance of RO 97,000. He has withdrawn cash of RO 1,000 through ATM machine and paid RO 24,400 to his creditor by cheque. After these transactions his current account balance will be: a. RO 71,600 b. RO 51,600 c. RO 71,400 d. RO 21,600
1. Jackie received $10 000 and deposits it in CIBC. The Current RRR is 12.5%. What is the expected change in deposits? 2. You place $9 700 into the bank which was able to create credit worth $106 700. What is the credit creation multiplier? 3. You are given the following information: Initial Deposit $2 750 Change in deposits $11 000 Calculate the RRR. 4. A customer deposits money into a bank which was able to create $10 000 000 in credit from it. The RRR is 10%. What was the value of the initial deposit?
1.use the T-account to show the effect on First National Bank a. You repay a $100 loan from First National Bank by writing a $100 check from your Second National Bank checking account. b. The Fed purchases $100 of government bonds from FNB.
Your friend, Gerald, has asked you to help him with his bank statement. He is sure there are some errors and some things just do not make sense to him. Study the bank statement shown below and answer the questions that follow. • The fee for deposits is R2,00 plus R1,00 for every R100,00. • Stop order payments cost R2,50 regardless of the amount. • Card purchases cost R1,00 regardless of the amount • Gerald's biggest expense is his accommodation, he pays rent to S. Yusuf. Questions 3.4 Use the information regarding the banking fee to find a mistake in the fee column. Identify the mistake and correct it. 3.5 How much rent does Gerald pay each month? 3.6 The tax of R2 440 has already been deducted from Gerald’s salary. What tax rate (percentage of his total salary) is he paying towards tax? Round off your answer to two decimal values.
Roger Richman owns Richman Blankets.Answer thw following questions. (a) He asks you to explain how he should treat the following reconciling items when reconciling the company’s bank account. 1. Outstanding checks. Deduct from balance per bankAdd to balance per booksAdd to balance per bankDeduct from balance per books 2. A deposit in transit. Deduct from balance per bankAdd to balance per booksDeduct from balance per booksAdd to balance per bank 3. The bank charged to the company account a check written by another company. Add to balance per bankDeduct from balance per booksDeduct from balance per bankAdd to balance per books 4. A debit memorandum for a bank service charge.…
PA11. LO 8.6Inner Resources Company received the following bank statement. Using the information from Exercise 8.5 and Exercise 8.6, prepare the bank reconciliation. 8.5 Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. The owners invested $8,500 from their personal account to the business account. Paid rent $650 with check #101. Initiated a petty cash fund $550 check #102. Received $750 cash for services rendered. Purchased office supplies for $180 with check #103. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. Received $1,200 cash for services rendered. Paid wages $560, check #105. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. Increased Petty Cash by $100, check #107.
A, Mr. B and Mr. C have the following accounts in the closed XY Bank: Account No. 1 in the name of Mr. A, P150,000, Account No. 2 in the name of “Mr. A in trust for Mr. B”, P350,000, Account No. 3 in the name of “Mr. A by Mr. C”, P200,000. How much is the insured and uninsured deposit of Mr. A, Mr. B and Mr. C with the PDIC? Explain.