Grier Food Store Used the Following Information in Recording Its

question 65

Essay

Grier Food Store used the following information in recording its bank reconciliation for the month of April. (1) Checks written in April but still outstanding $6,300.
(2) Checks written in March but still outstanding $2,800.
(3) Deposits of April 30 not yet recorded by bank $4,900.
(4) NSF check of customer returned by bank $500.
(5) Check No. 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549.
(6) Bank service charge for April was $40.
(7) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in April.
(8) The bank collected a note receivable for the company of $6,000 plus $240 interest revenue.
Instructions
Prepare a bank reconciliation at April 30.

Analyze and decide between various offers or payment schedules based on economic value.

Apply time value of money principles to real-world financial decisions.

Understand the basic principles of loan calculation and repayment strategies.

Calculate the economic value of different payment plans.

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Definitions:

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by shareholder equity.

Return On Assets

A measure of how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.

Return On Equity

A measure of the profitability of a business in relation to the equity, calculated by dividing net income by shareholders' equity.

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to sales. It's often expressed as a percentage indicating how much of each dollar in sales a company keeps as profit.