Problem 5-180 [LO 5-4] McDermott Company's bank statement for September 30 showed an ending cash balance of $1,532. The company's Cash account in its general ledger showed a $1,190 debit balance. The following information was also available as of September 30. The bank deducted $190 for an NSF check from a customer deposited on September 15. The September 30 cash receipts, $1,380, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement. A $28 debit memorandum for checks printed by the bank was included with the canceled checks. Outstanding checks amounted to $1,340. Included with the bank statement was a credit memo in the amount of $940 for an EFT in payment of a customer’s account. Included with the canceled checks was a check for $340, drawn on the account of another company. Required: a. Prepare a bank reconciliation as Of September 30. b. Prepare the journal entries for items on the company's bank reconciliation as Of September 30.

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

Lin corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. the company’s monthly fixed expense is $32,400. required: 1. calculate the unit sales needed to attain a target profit of $5,000. (do not round intermediate calculations.) 2. calculate the dollar sales needed to attain a target profit of $8,400.

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.