The year-end adjustment to recognize supplies expense will have an impact on A Company's financial statements.
Firstly, the income statement will reflect a decrease in net income, as the supplies expense is recognized, reducing the company's profitability for the year. This adjustment will also affect the balance sheet, specifically the asset side, as the supplies inventory will decrease due to the expense recognition. This reduction in supplies will lower the company's total assets. Additionally, the adjustment will affect the statement of cash flows, primarily in the operating activities section. The recognition of supplies expense will decrease the company's cash flow from operations, as it reflects an outflow of funds used to purchase supplies.For such more questions on year-end adjustment
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Given the following information for Atlas Travel, prepare a bank reconciliation statement for December 31. Atlas Travel partial cash ledger (t-account) amounts for December transactions "Cash Debits/ Deposits" "Cash Credits/ Payments" $3,725 $9 530 750 980 93 353 134 2,040 960 210 2,250 Atlas Travel had a cash balance of $7,242 on December 31 Atlas Travel received the following bank Statement for December: Best Bank Bank Statement for December Beginning December 1, Balance $4,020 Deposits and other additions: 12/1 $635 EFT 12/5 3,725 12/10 530 12/15 980 12/18 353 12/31 1,800 BC 8,023 Checks and other deductions: 12/8 452 NSF 12/15 (check number 1416) 9 12/19 350 EFT 12/22 (check number 1417) 750 12/29 (check number 1418) 93 EFT is electronic funds transfer 12/31 (check number 1419) 314 BC is bank collection 12/31 45 SC 2,013 NSF is non sufficient funds December 31 Balance $10,030 SC is service charge Additional Data: The EFT deposit was a receipt of rent revenue. The EFT deduction was payment of insurance expense. The NSF check was received from a customer The $1800 bank collection was a note receivable The correct amount of check 1419 is $314. Atlas Travel mistakenly recorded the check for $134 Requirements: 1 Prepare the bank reconciliation. Atlas Travel Bank Reconciliation December 31, 20## Best Bank Balance, Dec. 31 Atlas Travel Balance Dec 31
Atlas Travel Bank Reconciliation
December 31, 20##
Best Bank Balance, Dec. 31 $10,030
Atlas Travel Balance, Dec. 31 $7,242
Outstanding Checks:
Check Number 1416 $9
Check Number 1417 $750
Check Number 1418 $93
Check Number 1419 $314 (Corrected amount)
Add:
EFT Deposit $635
Bank Collection $1,800
Subtract:
NSF Check $452
EFT Deduction $210
Service Charge $45
Adjusted Atlas Travel Balance, Dec. 31 $8,281
Start with the Best Bank Balance from the bank statement: $10,030.
Compare it with the Atlas Travel Balance from the cash ledger: $7,242.
Identify any outstanding checks (checks issued but not yet cleared by the bank):
Check Number 1416: $9
Check Number 1417: $750
Check Number 1418: $93
Check Number 1419: $314 (Corrected amount)
Add any deposits or credits that have not yet been recorded in the cash ledger:
EFT Deposit: $635
Bank Collection: $1,800
Subtract any deductions or payments that have not yet been recorded in the cash ledger:
NSF Check: $452
EFT Deduction: $210
Service Charge: $45
Calculate the adjusted Atlas Travel Balance by adding the outstanding checks, subtracting the deductions, and adding the deposits: $8,281.
Therefore, after reconciling the bank statement with the cash ledger, the adjusted Atlas Travel Balance on December 31 is $8,281.
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performance.
Below is the information relating to production and sale of the
threeproducts for the year ending 31 December 2019:
Particulars
Krollers
Bags
Output sold (000)
Unit sales and costs
Selling price
Direct materials
Direct labour
Fixed production costs
Selling and distribution
Costs
Layers
Bags
1,200
Shs
1,050
Shs
Broilers
Bags
1,300
Shs
200,000 185,000 180,000
90,000 100,000
60,000 50,000
28,000 24,000
7,000 7,000
80,000
45,000
30,000
7,000
Administrative costs
5,000 5,000
6,000
Management accountant further advised that shutting down the
production line of feed concentrate for Kroilers will save 20% of the
total annual fixed costs.
Required:
Advise SIL's management, on whether the production line of
feed concentrate for Kroilers should be shut down.
(9 marks)
Based on the information provided, I recommend that SIL does not shut down the production line of feed concentrate for Kroilers
How to explain the informationThe decision to shut down a production line is a complex one that should be made on a case-by-case basis.
In the case of SIL, the management accountant has advised that shutting down the production line of feed concentrate for Kroilers will save 20% of the total annual fixed costs. This would result in a net profit increase of Shs. 2,800,000 (20% of 28,000,000). However, there are a number of other factors that need to be considered.
Based on the information provided, I recommend that SIL does not shut down the production line of feed concentrate for Kroilers. The financial benefits of the closure would be offset by the costs of job losses, lost sales, and damage to the company's reputation. The company should explore other options, such as finding a way to reduce costs without closing the production line.
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Draw a production possibility frontier for a society that's produces shoes and clothing using 10 units of labor and indicate the point of efficient and inefficient or combination
To draw a production possibility frontier (PPF) for a society that produces shoes and clothing using 10 units of labor, we need to assume a simplified scenario where the society can allocate its labor between the two goods.
Let's assume that society can produce shoes and clothing with the following labor requirements:
Shoes: 2 units of labor per unit produced
Clothing: 1 unit of labor per unit produced
To construct the PPF, we can vary the allocation of labor between shoes and clothing and observe the maximum output combinations.
Here is an example of a PPF with labor (input) on the x-axis and output (shoes and clothing) on the y-axis:
| /
| /
| /
| /
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| / Inefficient
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Efficient
The curve represents the production possibility frontier. Points on or below the curve represent achievable combinations of shoes and clothing, given the available labor. Points above the curve are unattainable with the given resources.
The point on the curve labeled "Efficient" represents the combination of shoes and clothing that maximizes output given the available labor. It reflects the most effective use of resources.
Points below the curve, such as the one labeled "Inefficient," represent combinations where resources are not fully utilized, resulting in lower output levels. These combinations could indicate the underutilization of labor or inefficiency in production.
Please note that the actual shape and position of the PPF can vary depending on various factors, such as technological advancements, resource availability, and the specific production processes for shoes and clothing. The example provided here is a simplified representation to illustrate the concept of a PPF.
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price elasticity of demand for electricity
The price elasticity of demand for electricity reflects the sensitivity of electricity consumption to price changes.
The price elasticity of demand for electricity is a measure of the responsiveness of electricity consumption to changes in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
Understanding the price elasticity of demand for electricity is important for policymakers, electricity providers, and regulators in making informed decisions.
In the short run, the price elasticity of demand for electricity tends to be relatively low or inelastic. This means that changes in the price of electricity have a relatively small effect on the quantity demanded.
Electricity is considered a necessary and essential good for many households and businesses, and there are limited substitutes available in the short run.
In the long run, the price elasticity of demand for electricity becomes more elastic. Consumers and businesses have more flexibility to respond to price changes by adjusting their behavior, investing in energy-efficient technologies, or switching to alternative energy sources.
The availability of substitutes and technological advancements play a significant role in increasing the elasticity of demand over time.
It is important to note that the price elasticity of demand for electricity can vary across different consumer segments and regions. Industrial and commercial consumers often have more options to adjust their electricity consumption patterns and tend to have a higher elasticity of demand.
Residential consumers, on the other hand, may have fewer alternatives and exhibit a lower elasticity of demand.
It helps policymakers and stakeholders anticipate the impact of price fluctuations and design effective policies related to pricing structures, subsidies, energy efficiency programs, and the promotion of renewable energy sources.
Understanding the price elasticity of demand for electricity is crucial for balancing economic, environmental, and social goals in the energy sector.
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2. Who pays the tariffs on imports on foreign steel into the United States? How does the payee deal with the additional costs that the tariffs represent
Answer: The importer of steel pays the tariffs on the steel then the importer then pays the additional costs of the tariffs to the payee.
Project financial management description
Project financial management involves the planning, monitoring, and control of financial resources within a project to ensure its successful execution.
What does project financial management cover ?It encompasses various activities and processes related to budgeting, forecasting, cost estimation, financial analysis, and reporting.
In the initial stages of project financial management, the project team collaborates to develop a comprehensive budget that outlines the estimated costs of resources, materials, labor, and other project-related expenses.
Regular financial reporting is also an essential component of project financial management. Project stakeholders, including senior management, investors, and sponsors, rely on accurate and timely financial reports to assess the financial health of the project.
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