Kristy Martin is getting married on Saturday. She purchases flowers for the church ceremony early Saturday morning from a local

Answer:

He is less likely to spend on scones.

Explanation:

To understand spending habits, one must consider various factors involved in purchasing.

1. Income: Some individuals have a tight budget, which leads them to reduce expenses affecting their spending capabilities. Jose may find purchasing scones less problematic since they are low-cost items, thus indicating a negative correlation.
2. Substitution: This could influence Jones’ spending on scones since he typically buys both together; if he stops his coffee purchases, he may also forgo buying scones.

Answer:

1.                                Damon Company

                     Bank Reconciliation Statement

                               October 31, 2018

Bank Balance                        

                                                                        Amount$

Bank cash balance as per statement             11,725

Add: Adjustment

       Deposits outstanding                               3,025

       (74,320 - 71,295)

       Bank error                                                  300

Less: Adjustment

         Check outstanding                                  1,485

         (72,467 - 70,983)

Bank balance as per Reconciliation              $13,567

Company's Cash balance

                                                                                   Amount$

Company's Cash balance as per General Ledger    8,397

Add: Adjustment

         Interest earned                                                    320

         Note collected                                                      5,000

Less: Adjustment

         Bank service fees                                                 150

Company's Cash balance as per Reconciliation         13,567

Thus, the accurate cash balance as of December 31, 2016 is $13,567

2. Required entries to modify the cash balance.

Date      Account Title and Explanation               Debit     Credit

31 Oct   Cash                                                            $5,320

                   Notes Receivables                                              $500

                    Interest revenue                                                 $320

              (For recording cash increase)

Date   Account Title and Explanation               Debit     Credit

31 Oct  Service charges                                        $150

                  Cash                                                                  $150

            (For recording cash decreases)

Response:

Details:

The journal entry for the payment received on April 13 from a customer is recorded as:

Date Account title and explanation Ref Debit Credit

Apr-13 Cash ($5000 - $150)                  $4,850  

         Sales discount ($5000* 3%)      $150  

                    Accounts receivable

                                                                            $5000

(To document the payment received from the customer after discount    

Answer:

The payback period is approximately;

B). 3.00

Explanation:

Step 1: Identify the total expense of the go-kart

Using the formula;

Total cost = purchase cost + annual depreciation × number of years

where;

purchase cost = $5,100

assume annual depreciation = 0

the years to recoup = n

Inserting values, we get;

Total cost = 5,100 + (0 × n) = 5,100

Step 2: Total cash inflows

Total cash inflows = (1,700 × n) = 1,700n

Step 3: Determine the payback duration

Setting total expense equal to total cash inflow

5,100 = 1,700n

n = 5,100/1,700

n = 3

The payback timeframe in years is therefore approximately 3 years