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Banking

When considering the process of preparing a bank reconciliation it's noted that under normal circumstances only one section of the analysis may generate additional entries on the books of the account holder. Which of the following items would cause an entry on the books on the account holder after reviewing and preparing their bank reconciliation? Answer A. $1,200 of outstanding checks that have not cleared the bank yet. B. $650 of deposits in transit that have not yet been recorded by the bank, but were dropped off in the deposit box last night. C. A $66 check written to Builder's Depot that hasn't cleared the bank yet. D. $8.65 worth of interest deposited into the account of the account holder by the bank on a maturing Certificate of Deposit. This is the first time that the account holder is aware of the interest deposit for the semiannual period. Please utilize the previous question regarding the preparation of a bank statement and any necessary correct answers to address the following question. What would be the journal entry that would need to be recorded on the books of the account holder once the bank reconciliation is completed? Item Account Name Post Ref DEBIT CREDIT 1 Cash $8.65 Interest Revenue $8.65 2 Deposits in Transit $650 Cash $650 3 Cash $1,200 Accounts Receivable $1,200 4 Accounts Payable-Home Depot $66 Cash $66 Answer A. Item # 4 is the correct journal entry B. Item # 1 is the correct journal entry C. Item # 2 is the correct journal entry D. Item # 3 is the correct journal entry

Two questions.. When considering the process of preparing a bank reconciliation it's noted that under normal circumstances only one section of the analysis may generate additional entries on the books of the account holder. Which of the following items would cause an entry on the books on the account holder after reviewing and

Federal bank

a) In what sense does the Fed "create money"? b) Suppose that the minimum required reserve ratio for banks was 1/11. Also suppose that banks held no excess reserves and that currency in circulation was unchanged. What action in the Treasury bill market would the Fed have to take to increase bank checking account deposits by $

Macroeconomics Question and Problems

7.Donaldson + son has an ROA of 10%, a 2% profit margin, and a return on equity equal to 15%. What is the company's total assets turnover? what is the firms equity multiplier? 8. The nelson company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise

Amounts of the Assets and Liabilities of Dolan Banking Co.

See the attachment. Create the Balance Sheet, Income Statement and Statement of Retained Earnings for the following company in an Excel workbook, employing three sheets. Use the prescribed GAAP presentation for the financial statements. When possible reference/link data across sheets to make the spreadsheet as dynamic as po

Africa and cell phones

Need an Industry study on circuit boards in 300+ words with references and statistics. Choose a product or service with a circuit board and what country I would sell or invest in and why. I choose cell phones and Africa as this is the fastest growing market.

Analyze the characteristics that make any transaction possible and justify the importance of each of the characteristics. Evaluate the role institutions play in transactions and discuss the likely economic impact if institutions did not exist. Provide specific examples to support your response.

Analyze the characteristics that make any transaction possible and justify the importance of each of the characteristics. Evaluate the role institutions play in transactions and discuss the likely economic impact if institutions did not exist. Provide specific examples to support your response.

Discuss your thoughts on whether CEOs' exceptionally high pay is economically justified. Explain your rationale. 2. Is exceptionally high pay to CEOs economically justified when their organization is unsuccessful; and, do we generally observe significant reductions in CEO compensation under the circumstances I have described?

1. Discuss your thoughts on whether CEOs' exceptionally high pay is economically justified. Explain your rationale. 2. Is exceptionally high pay to CEOs economically justified when their organization is unsuccessful; and, do we generally observe significant reductions in CEO compensation under the circumstances I have descr

Value of Firm

Raymond Manufacturing is a privately held company; all long-term finances are from the Raymond brothers in the form of equity interests. An aggregate of 1 million shares is distributed between the Raymond brothers: Roy has a 50% equity interest in the firm and Bon has the other 50% equity interest. The firm is expected to gene

Explicit, implicit and economic costs

Could you please help me with a question on how to calculate explicit, implicit and economic costs using the attached illustration. ** Please see the attached file for the complete problem description **

Monetary Policy tool and Instruments

Differentiate between monetary policy instruments and monetary policy tools. Describe any 2 key tools of monetary policy and describe how they would be used to implement expansionary monetary policy.

Monetary policy calculation using RR, CDR and MM.

If the Bank of Canada sell $100 million worth of bonds to the public in an open market operation, what is the change in quantity of money that will eventually result? Assume that the currency drain is 0.15 and the desired reserve ratio is 0.05. Show your calculations.

Concentrations ratios are presented.

Scenario: Before you write your business plan one must decide between two different industries A or B. Industry A has 20 firms and a Concentration Ratio (CR) of 30% â?¢ What is the name for this type of industry? â?¢ Describe some of this industry's characteristics. â?¢ If you were in this industry and there was an inc

value of the dollar on the foreign exchange market

Economists have made the following projections for the coming year: Exports $540B, imports $710B, capital outflow $320, capital inflow $420. As the year is unfolding, it turns out that these projections are proving to be quite accurate (a) Explain what will gradually happen to the value of the dollar on the foreign exchan

Reserve Rate in Macroeconomics

1. Assume Company X deposits $80,000.00 in cash in commercial bank Y. If no excess reserves exist at the time this deposit is made and the reserve ratio is 30%, then bank Y can increase the money supply by a maximum of ??? 2. If the required reserve ratio is 15% and commercial bankers decide to hold additional reserves equal

What is the value of a call option?

B&R, a reputable East Coast Bank, has created a portfolio of assets that is selling quite well on the market. This particular portfolio is a series of call options. In particular, the portfolio contains one call option for every year from now into the infinite future. Each call option gives the owner the right to buy 1 share

Economic output and interest rates

Consider a closed economy which has suffered from a sub-prime crisis. During such a crisis households and bankers often become more cautious. Depositors withdraw their money from banks, preferring to hold their money in currency form. Bankers also increase their reserve ratios so that they have enough cash on hand to meet the de

AT&T pricing strategy, RV pricing strategy

In the first half of the twentieth century, AT&T had a near monopoly on local and long distance phone service. The firm charged a price for local telephone services that was roughly one-half of its cost of providing the services. In contrast, it charged almost two times it cost for long distance services. Why do you think AT&T

Working Capital Management

(Please utilize & respond with an answer on the attached excel file) Drugs 'R Us operates a mail order pharmaceutical business on the West Coast. The firm receives an average of $325,000 in payments per day. On average, it takes four days for the firm to receive payment, from the time customers mail their checks to the time t

Financial Condition Analysis

Southwest Physicians, a medical group practice, is just being formed. It will need $2 million of total assets to generate $3 million in revenues. Furthermore, the group expects to have a profit margin of 5 percent. The group is considering two financing alternatives. First, it can use all-equity financing by requiring each

Calculating Accounting and Economic Profits - Sound Devices Inc.

At the beginning of the year, an audio engineer quit his job and gave up a salary of $175,000 per year in order to start his own business, Sounds Devices, Inc. The new company builds, installs, and maintains custom audio equipment for businesses that require high-quality audio systems. A partial income statement for Sound Device

The volume of bank loans in the economy

1) Would each of the following events increase or decrease the volume of bank loans? Explain. a) New regulations make it easier for shareholders to replace company directors. b) A new law makes it a felony to default on a bank loan. c) All the economy's small firms are bought by large firms. d) Mutual funds reduce

The required reserve ratio

The required reserve ratio is 10%. If the Fed injects $100,000,000 of reserves into the banking system, by how much will the money supply increase? a. $1,000,000,000 b. $100,000,000 c. $10,000,000,000 d. None of the above.