Umber Company's bank reconciliation for September is presented below. Prepare the necessary adjusting journal entries based on the reconciliation report.UMBER COMPANYBank ReconciliationSeptember 30Bank statement balance$1,350Book balance of cash?$995Add:?Add:??Deposit in transit1,250Proceeds of note?875Bank error275????$2,875??1,870Deduct:?Deduct:??Outstanding checks1,145NSF check plus processing fee?125??Bank service charge?15Reconciled balance$1,730Reconciled balance?$1,730
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| Cash | 875 | ? |
| Notes receivable | ? | 875 |
| ? | ? | ? |
| Accounts receivable | 125 | ? |
| Cash | ? | 125 |
| ? | ? | ? |
| Service charge expense | 15 | ? |
| Cash | ? | 1 |
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If there is cash involved in a business transaction, the transaction should be recorded in either the ________.
A) cash payments journal or cash receipts journal B) cash payments journal or general journal C) cash payments journal or cash receipts journal and in general journal D) sales journal or purchases journal
Direct materials cost is a fixed cost because it always occurs in a production process
Indicate whether the statement is true or false
Which of the following is not an internal control activity for cash?
A) Unannounced audits of cash on hand should be made occasionally. B) The number of persons who have access to cash should be limited. C) The functions of recordkeeping and keeping custody of cash should be combined. D) All cash receipts should be recorded promptly.
Masley Corporation has provided the following data for its two most recent years of operation:?Variable manufacturing cost per unit produced:??Direct materials$13?Direct labor$6?Variable manufacturing overhead$4?Fixed manufacturing overhead per year$140,000In Year 1, 10,000 units were produced and in Year 2, 7,000 units were produced.Required:a. Assume the company uses absorption costing. Compute the unit product cost in each year.B. Assume the company uses variable costing. Compute the unit product cost in each year.
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