Carla's business recently suffered an attack that shut down operations. What planning document describes how her business should

Response:

The correct choice is option "D": It is likely that the fees imposed by a bank will exceed the interest offered on a teenager’s savings account during their initial saving period.

Clarification:

Financial institutions often impose elevated fees on savings accounts for teenagers since they lack a credit history. This can make them appear to be riskier financially, particularly concerning overdrafts. Consequently, banks generally offer lower interest rates on these accounts along with certain limitations that one should consider before selecting a bank for account opening.

The depreciable life of an asset is crucial for the financial manager. Generally, a shorter depreciable life is advantageous, as it leads to quicker cash flow circulation. This concept of depreciation allows for the expense of financial or intangible resources to be allocated over their useful lives. It indicates the extent to which an asset's value diminishes over time. For both taxation and accounting, long-term assets can be depreciated, and the duration allocated to these assets significantly influences the cash flow. Hence, shorter depreciable lives are more favorable compared to longer ones due to the expedited influx of cash for finance managers.

Answer:

1. Adjusted cash balance equals the adjusted balance from the bank statement, totaling $133,620.

2. Refer to the journal entries and details provided in section 2 below.

Explanation:

The data presented in the question has been compiled and organized in the attached Excel document prior to answering the questions as follows:

1. Complete the bank reconciliation for December 31, 2019.

The bank reconciliation is shown in two formats:

a) Based on cash book balance

Gibson Energy Ltd.

Bank Reconciliation  

as of December 31, 2019  

Details                                                                   Amount ($)    

Cash book balance at December 31 awaiting reconciliation         62,000

Add:

Note receivable collected from XYZ Corp                            80,000

Less:

Dishonored NSF check                                               (7,000)

Overdraft interest expense                                            (1,320)

Bank service charge                                                   (60)  

Adjusted cash balance as of December 31                             133,620  

b) Based on bank statement balance

Gibson Energy Ltd.

Bank Reconciliation  

as of December 31, 2019  

Details                                                                       Amount ($)    

Bank statement balance at December 31 awaiting reconciliation          131,620

Add:  

Cash deposited on December 9 yet to be recognized          85,000

Cash deposited on December 31 yet to be recognized            15,000

Check #52094 issued in error                                      62,000

Less:

Outstanding checks 233                                                    (83,000)

Outstanding checks 239                                                    (77,000)  

Adjusted bank statement balance as of December 31                 133,620  

2. Document the journal entries needed to align the Cash in Bank account with the adjusted cash balance on the December 31 bank reconciliation, including explanations.

Date      Account Title & Description              DR ($)           CR ($)  

31 Dec 19    Cash                                                80,000  

                   Note Receivable                                                     78,049

                   Interest on Note Receivable                                       1,951

                  (To record note receivable & interest collected from XYZ)    

31 Dec 19   Overdraft interest expense                1,320

                  Service charge                                        60

                  Cash                                                                           1,380

                   (To record interest expense and bank charges)                  

31 Dec 19   Accounts Receivable                           7,000

                    Cash                                                                           7,000

                  (To record NSF check that was dishonored)                                      

Dec 31              Management Services....................................$1875

                           To Prepaid Expenses.....................................................$1875

(Reflecting the recognition of prepaid expenses for the year)

Answer:

de-industrialization

Explanation:

Deindustrialization signifies a period in social and economic history characterized by a reduction or complete removal of the industrial sector within a specific area or nation, especially concerning manufacturing or mining sectors. It is essentially the reverse process of industrialization.

This phenomenon typically occurs when industrial activities are no longer deemed economically viable. It marks a stage where industrial growth diminishes or vanishes in a certain locale, often as a result of significant social or economic changes.