The Following Pertains to Carlisle Company

question 25

Essay

The following pertains to Carlisle Company:
1.Balance per bank statement,dated March 31,$4,450.
2.Balance of Cash account on company's books at March 31,$4,459.
3.The $1,300 deposit of March 31 was not on the bank statement.
4.Of the checks recorded as cash disbursements in March,some checks totaling $1,050 have not cleared the bank.
5.Service charges for the month,$10.
6.The bank erroneously charged the company's account for the $200 check of another company with a similar name.
7.The bank credited the company's account with the $1,000 proceeds of a noninterest-bearing note that it collected for the company.
8.NSF check of $75 was returned with the bank statement.
9.The bank paid and charged to the company's account a $507 noninterest-bearing note of the company.The payment has not been recorded by the company.
10.The bookkeeper recorded a customer's check of $148 as $135.
11.The bank credited the company's account for $20 interest earned.
Prepare the bank reconciliation as of March 31.

Understand the basic principles and applications of cost-volume-profit (CVP) analysis.

Identify and calculate break-even points in units and dollars.

Calculate margin of safety and understand its significance.

Analyze the effects of changes in cost structure on CVP outcomes.

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Definitions:

Market Economy

An economic system where supply and demand from consumers drive the production of goods and services, with minimal government intervention.

Supply And Demand

Basic economic concept that describes the balance between the availability of a product or service and the desire (demand) for it.

Free Enterprise System

An economic system where private businesses operate in competition, largely free of state control, with limited government intervention.

Market System

An economic system in which decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.