The Bank Statement for Gatlin Co

question 108

Essay

The bank statement for Gatlin Co. indicates a balance of $7,735 on June 30. After the journals for June had been posted, the cash account had a balance of $4,098.?
(a)Cash sales of $742 had been erroneously recorded in the cash receipts journal as $724.
(b)Deposits in transit not recorded by bank, $425.
(c)Bank debit memo for service charges, $35.
(d)Bank credit memo for note collected by bank, $2,475 including $75 interest.
(e)Bank debit memo for $256 NSF
(not sufficient funds) check from Janice Smith, a customer.
(f)Checks outstanding, $1,860.?Record the appropriate journal entries that would be necessary for Gatlin Co.

Understand the concept of make-or-buy decisions and how to calculate the total costs associated.

Identify the advantages and disadvantages of outsourcing parts of production.

Determine the opportunity costs involved in make-or-buy decisions.

Calculate avoidable fixed costs and their impact on make-or-buy decisions.

---

Definitions:

Computerized Accounting Systems

Digital systems that automate and manage financial transactions and records, enhancing accuracy and efficiency in financial reporting.

Journalizing Errors

Mistakes made during the process of recording transactions in the accounting journal.

Record Keeping

The process of maintaining accurate and systematic records of an organization's financial transactions and other significant events.

Timeliness

The quality of being done within a desirable time frame or deadline, often crucial for decision-making or reporting.