What is the adjusted balance on the bank reconciliation?

What is the journal entry for recovery of bad debts written off?

Which of the following would not be found in the accounting system of a service provider?

a.finished goods ledger

b.deferred revenue account

c.job cost sheets

d.cost ledger

What type of risk do zero-coupon bonds eliminate?

Is Allowance for Bad Debts a current liability?

Which one of the following is an example of systematic risk?

A. A city imposes an additional one percent sales tax on all products.
B. A flood washes away a firm's warehouse.
C. Investors panic causing security prices around the globe to fall precipitously.
D. Corn prices increase due to increased demand for alternative fuels.
E. A toymaker has to recall its top-selling toy.

Using the following information, prepare a bank reconciliation.

• Bank balance: $4,021
• Book balance:$2,928
• Deposits in transit: $1,111
• Outstanding checks:$679
• Bank charges: $35
• Notes receivable:$1,325; interest: $235

Which of the following statements is true of the debt to equity ratio?

A. If the debt to equity ratio is less than 1, then the company is financing more assets with debt than with equity.

B. If the debt to equity ratio is greater than 1, then the company is financing more assets with equity than with debt.

C. The higher the debt-to-equity ratio, the lower the company's financial risk.

D. The higher the debt-to-equity ratio, the greater the company's financial risk.

What is the effect of bad debts on revenue recognition?

Determine which of the statements below is true regarding the adjusted bank balance and the adjusted book balance on a bank reconciliation.

a. The adjusted bank balance must equal the adfjusted cash balance per books

b. The adjusted balance per books must equal the cash balance printed on the bank statement

c. The cash balance on the bank statement must equal the cash balance In the general ledger before the bank reconciliation

d. The adjusted book balance will rarely equal the adjusted bank balance

Is Bank Reconciliation not required in every company?

Which one of the following costs will not be included in the cost of equipment?

a. Installation
b. Freight
c. Testing
d. Annual insurance

Which of the following statements about time-series forecasting is true?

A. It makes extensive use of the data collected in the qualitative approach.
B. Because it accounts for trends, cycles, and seasonal patterns, it is always more powerful than associative forecasting.
C. It is based on the assumption that the analysis of past demand helps predict future demand.
D. It is always based on the assumption that future demand will be the same as past demand.
E. All of the above are true.

The Electric Company engaged in the following transactions during 2017. The beginning cash balance was $43,000 and the ending cash balance was$48,600.

1. Sales on account were $274,000. The beginning receivables balance was$86,000 and the ending balance was $74,000.

2. Salaries expense was$115,000. The beginning salaries payable balance was $9,600 and the ending balance was$7,500.

3. Other operating expenses were $118,000. The beginning Other Operating Expenses Payable balance was$8,500 and the ending balance was $6,000.

4. Recorded$25,000 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $18,000 and$43,000, respectively.

5. The Equipment account had beginning and ending balances of $28,000 and$42,000, respectively. There were no sales of equipment during the period.

6. The beginning and ending balances in the Notes Payable account were $38,000 and$32,000, respectively. There were no notes payable issued during the period.

7. There was $4,600 of interest expense reported on the income statement. The beginning and ending balances in the Interest Payable account were$6,400 and $6,200, respectively.

8. The beginning and ending Merchandise Inventory account balances were$26,000 and $32,500, respectively. The company sold merchandise with a cost of$119,000. The beginning and ending balances in the Accounts Payable account were $10,000 and$12,500, respectively.

9. The beginning and ending balances in the Notes Receivable account were $80,000 and$20,000, respectively. Notes receivable result from long-term loans made to creditors. There were no loans made to creditors during the period.

10. The beginning and ending balances in the Common Stock account were $140,000 and$190,000, respectively. The increase was caused by the issue of common stock for cash.

11. Land had beginning and ending balances of $48,000 and$28,000, respectively. Land that cost $20,000 was sold for$16,000, resulting in a loss of $4,000.

12. The tax expense for the period was$6,600. The Tax Payable account had a $3,200 beginning balance and a$2,800 ending balance.

13. The Investments account had beginning and ending balances of $10,000 and$30,000, respectively. The company purchased investments for $40,000 cash during the period, and investments that cost$20,000 were sold for $26,000, resulting in a$6,000 gain.

Required

Determine the amount of cash flow for each item and indicate whether the item should appear in the operating, investing, or financing activities section of a statement of cash flows. Also, identify any items that do not affect the cash flow statement. Assume The Electric Company uses the direct method for showing net cash flow from operating activities.