The Following Information Was Available for Anderson Company for the Month

question 111

Essay

The following information was available for Anderson Company for the month ended May 31, 2015.(a) The book balance at May 31, 2015 was $3,890.22 The bank balance at May 31, 2015 was $5,660.22 Outstanding cheques amounted to $6,310.The May 31st cash receipts of $5,600 were deposited but have not yet(d)appeared on the bank statement.(e)A $50 debit memorandum for cheques printed by the bank was included with the cancelled cheques.A customer's note for $1,000 was collected by the bankinterest on the note was $110.(g)The bank incorrectly recorded a cheque payment of $1,600 as $1,500.Prepare a bank reconciliation for Anderson Company at May 31, 2015.

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Definitions:

Variable Expenses

Expenses that fluctuate with changes in production volume or business activity.

Fixed Expenses

Costs that remain constant and do not change with the level of business activity, similar to fixed overhead.

Break-even Point

The level of sales at which total revenues equal total costs, resulting in no net profit or loss.

Break-even

The moment total expenditure equals total earnings, resulting in neither a financial gain nor a loss.