Answer:
$727,000
Explanation:
Calculation of cash paid for merchandise
Cost of goods sold
$735,000
Add:
Merchandise inventory, December 31
$82,400
Less:
Merchandise inventory, January 1
($84,700)
Purchases during the period
$732,700
Add:
Accounts payable, January 1
$54,500
Less:
Accounts payable, December 31
($60,200)
Cash paid for merchandise
$727,000
According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes.
Required:
Calculate the employer's payroll taxes.
a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.
Answer:
$9800
Explanation:
This question requires us to calculate the employer's payroll taxes
His social security tax = $110000*6.0%
= 110000x0.06
=$6600
His Medicare tax = $110000*1.5%
= 110000*0.015
= $1650
His state and federal unemployment tax = 25000 dollars
State = 25000x5.4%
= $1350
Federal = 25000x0.8%
= $200
Total employers payroll tax
$(6600+1650+1350+200)
= $9800
Answer please I need help
Answer:
1st answer is 1,100
2nd answer is 1,050
Joshua borrowed $1,400 for one year and paid $70 in interest. The bank charged him a service charge of $12. If Joshua repaid the loan in 12 equal monthly payments, what is the APR? (Enter your answer as a percent rounded to 1 decimal place.)
APR %
Answer: 10.81%
Explanation:
The annual percentage rate is the percentage cost of credit on yearly basis.
APR will be calculated
= [(2 x n x I) /( P x ( N + 1)]
where,
n = number of months = 12
I = Finance cost = Interest + service charge = $70 + $12 = $82
P = Borrowed amount = $1,400
N= Loan period = 12
We'll then slot the values into the annual percentage rate (APR) formula and this will be:
= ( 2 x n x I) /( P x ( N + 1))
= ( 2 x 12 x 82) /( 1400 x ( 12 + 1))
= 0.1081
=10.81 %
You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.62 and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio
Answer:
1.71
Explanation:
Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
The market has a beta of one. If a portfolio has the same level of systematic risk that is the same as that of the market, its beta would be equal to 1.
The beta of a risk free asset is zero
The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio
weighed beta of a stock = percentage of the stock in the portfolio x beta of the stock
1 = (0.3 x 1.62) + (0.3 x 0) + (0.3 x a)
1 = 0.486 + 0 + 0.3a
1 - 0.486 = 0.3a
a = 1.71
Asonia Co. will pay a dividend of $4.95, $9.05, $11.90, and $13.65 per share for each of the next four years, respectively. The company will then close its doors. If investors require a return of 9.2 percent on the company's stock, what is the stock price
Answer: $30.86
P = $4.95/(1 + .92) + $9.05/(1 + .92)^2 + $11.90/(1 + .92)^3 + $13.65/(1 + .92)^4
P = 4.53+7.59+ 9.14+ 9.60=$30.86
Explanation:
Dividend discount: Dividend year 1 divided by (1 plus the required rate of return)
PLUS Dividend year 2 divided by (1 plus the required rate of return) to the second power
PLUS Dividend year 3 divided by (1 plus the required rate of return) to the third power
PLUS Dividend year 4 divided by (1 plus the required rate of return) to the fourth power
Bolka Corporation, a merchandising company, reported the following results for October: Sales $ 407,000 Cost of goods sold (all variable) $ 173,400 Total variable selling expense $ 20,400 Total fixed selling expense $ 22,200 Total variable administrative expense $ 14,800 Total fixed administrative expense $ 39,700 The contribution margin for October is: Multiple Choice $198,400 $233,600 $136,500 $345,100
Answer:
the contribution margin for October is $198,400
Explanation:
The computation of the contribution margin for October is given below:
= Sales - Cost of goods sold (all variable) - Total variable selling expense - Total variable administrative expense
= $407,000 - $173,400 - $20,400 - $14,800
= $198,400
Hence, the contribution margin for October is $198,400
Therefore the first option is correct
And, the same should be considered
ABC Manufacturing allocates overhead based on direct labor hours. You are given the following information for 2020:
Budget: Budgeted overhead $2,000, budgeted direct labor hours: 1,000
Actual: Actual overhead was $3,000, actual direct labor hours worked: 1,200
Overhead for 2020 was:_______.
a. Underapplied by $1,000
b. Underapplied by $600
c. Overapplied by $1,000
d. Overapplied by $600
Answer:
c. Overapplied by $1,000
Explanation:
Given that budgeted overhead is $2000 and actual overhead is $3000, overhead is overapplied or in excess(deficit) of overhead budget by $1000. If actual overhead were to be lower than budgeted overhead, overhead would be under applied or we would have a surplus of $1000(if budgeted overhead is $3000 and actual overhead is $1000 for example).
Sutton Inc. can produce 100 units of a component part with the following costs: Ch01Q78 If Sutton Inc. can purchase the component part externally for $345,000 and only $28,000 of the fixed costs can be avoided, what is the correct make-or-buy decision
Question Completion:
Direct materials cost $150,000
Direct labor cost $100,000
Variable overhead $50,000
Fixed overhead $60,000
Answer:
Sutton Inc.
The correct make-or-buy decision is:
Continue to produce the component.
Explanation:
a) Data and Calculations:
Production costs:
Direct materials cost $150,000
Direct labor cost $100,000
Variable overhead $50,000
Fixed overhead $60,000
Production costs = $360,000
Relevant costs to make:
Direct materials cost $150,000
Direct labor cost $100,000
Variable overhead $50,000
Fixed overhead $28,000
Avoidable costs = $328,000
Cost of purchasing the component = $345,000
Difference = $17,000
Sutton will pay $17,000 more if it buys the component than if it makes it. Therefore, it is more cost-effective to make the component than buying from the outside supplier.
Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar. Today, the dollar is trading at 1.20 euros per dollar. The dollar has ________ and a possible reason for the change is ________ in the expected future exchange rate.
Answer: appreciated; an increase.
Explanation:
Since there's an increase in the dollar rate at the foreign exchange market at 1.10 euros per dollar to 1.20 euros per dollar, this implies that the dollar has appreciated.
The appreciation of the dollar simply means that there's an increase in the value of the dollar when it's compared to.anitgee currency. Tge reason for the change is the increase in the expected future exchange rate.
A three-year bond has an 8.0 percent coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10 percent, calculate the price of the bond assuming that the bond makes semiannual coupon payments.
Answer:
$949.24.
Explanation:
The price of the bond also known as the Present Value (PV) of the Bond CAN be calculated using a Financial Calculator as
FV = $1,000
I/yr = 10%
Pmt = ($1,000 x 8.0 %) / 2 = $40
N = 3 x 2 = 6
P/yr = 2
PV = ???
Inputting the data in a Financial Calculator gives a Present Value of $949.24. Thus the price of the bond is $949.24.
he next dividend payment by Savitz, Inc., will be $5.05 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $43 per share, what is the required return
Answer:
16.74%
Explanation:
Current Price = Expected Dividend / (Required Return - Growth Rate)
Required Return = (Expected Dividend / Current Price) + Growth rate
Required Return = ($5.05 / $43) + 5%
Required Return = 0.1174419 + 0.05
Required Return = 0.1674419
Required Return = 16.74%
Fina Corp. had the following transactions during the quarter ended March 31, 2018: Payment of fire insurance premium for calendar year 2018 800,000 What amount should be included in Fina's income statement for the quarter ended March 31, 2018?
Answer:
$200,000
Explanation:
When a company prepays for a service, the amount prepaid is recognized as an asset until the service is enjoyed (usually with the passing of time).
This is recorded as follows
Dr Prepaid expense
Cr Cash account
Being entries to recognize amount prepaid.
As the service is enjoyed,
Dr Expense
Cr Prepaid expense
Being entries to recognize expense incurred.
Since 800,00 was the amount prepaid for the calendar year 2018, by 31 March 2018, the amount used up (to be recognized as expense in the income statement) will be
3/12 * $800,000
= $200,000
The following data apply to Elizabeth's Electrical Equipment:
Value of operations $20,000
Short-term investments $1,000
Debt $6,000
Number of shares 300
The company plans on distributing $50 million by repurchasing stock. What will the intrinsic per share stock price be immediately after the repurchase?
Answer:
$50
Explanation:
Calculation to determine the intrinsic per share stock price be immediately after the repurchase
First step
Total Assets=Value of operations of 20,000+ Short term investments of 1000
Total Assets=$21,000
Second step
Equity =Assets - Debt
Equity= $21,000-$6,000
Equity= $15,000
Now let determine the intrinsic per share stock price
Intrinsic per share stock price=$15,000/300
Intrinsic per share stock price=$50
Therefore the Intrinsic value per share will be $50 immediately after the repurchase has occured.
The intrinsic per share stock price immediately after the repurchase would be approximately $166,716.67
How did we get the value?To determine the intrinsic per share stock price immediately after the repurchase, we need to calculate the new number of shares outstanding after the repurchase and then divide the remaining value of operations by the new number of shares.
Given data:
Value of operations: $20,000
Short-term investments: $1,000
Debt: $6,000
Number of shares: 300
First, we need to calculate the new number of shares outstanding after the repurchase. Since the company plans on distributing $50 million by repurchasing stock, we can use this information to determine the number of shares repurchased.
The value of operations ($20,000) plus the short-term investments ($1,000) minus the debt ($6,000) gives us the total equity value of the company before the repurchase:
Equity value before repurchase = Value of operations + Short-term investments - Debt
= $20,000 + $1,000 - $6,000
= $15,000
Let's assume the repurchased shares are denoted by R.
Now, we can set up an equation to represent the total equity value after the repurchase:
Equity value after repurchase = (Number of shares - R) × Intrinsic per share stock price
Given that the total equity value after the repurchase is $15,000 and the number of shares is 300, we have:
$15,000 = (300 - R) × Intrinsic per share stock price
We also know that the company plans on distributing $50 million by repurchasing stock, so we can set up another equation to represent the total value of the repurchased shares:
Total value of repurchased shares = R × Intrinsic per share stock price
Given that the total value of repurchased shares is $50 million, we have:
$50,000,000 = R × Intrinsic per share stock price
Now we can solve these two equations simultaneously to find the values of R (repurchased shares) and Intrinsic per share stock price.
We have the following system of equations:
$15,000 = (300 - R) × Intrinsic per share stock price ...(1)
$50,000,000 = R × Intrinsic per share stock price ...(2)
Divide equation (2) by Intrinsic per share stock price:
$50,000,000 / Intrinsic per share stock price = R
Substitute this value of R into equation (1):
$15,000 = (300 - ($50,000,000 / Intrinsic per share stock price)) × Intrinsic per share stock price
Simplify:
$15,000 = 300 × Intrinsic per share stock price - (50,000,000 / Intrinsic per share stock price) × Intrinsic per share stock price
$15,000 = 300 × Intrinsic per share stock price - 50,000,000
Rearrange the equation:
300 × Intrinsic per share stock price = $15,000 + $50,000,000
300 × Intrinsic per share stock price = $50,015,000
Intrinsic per share stock price = $50,015,000 / 300
Intrinsic per share stock price = $166,716.67 (rounded to two decimal places)
Therefore, the intrinsic per share stock price immediately after the repurchase would be approximately $166,716.67.
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Big Red Motors, Inc., employs 15 personnel to market its line of luxury automobiles. The average car sells for $75,000, and a 6 percent commission is paid to the salesperson. Big Red Motors is considering a change to the commission arrangement where the company would pay each salesperson a salary of $1,600 per mont plus a commission of 2 percent of the sales made by that salesperson. What is the amount of total monthly car sales at whit Big Red Motors would be indifferent as to which plan to select?
Answer: $600,000
Explanation:
The commission earned per car in the initial arrangement is:
= 6% * Total cars sales
With the second arrangement the amount spent would be:
= Salary of employees + commission
= (15 * 1,600) + (2% * total car sales)
= 24,000 + (2% * car sales)
Assuming total car sales is x, relevant expression is:
6% * x = 24,000 + (2% * x)
0.06x = 24,000 + 0.02x
0.06x - 0.02x = 24,000
0.04x = 24,000
x = 24,000 / 0.04
x = $600,000
Rolando, a senior employee, has been asked to monitor the activities of some new employees and report to her if he finds them engaged in activities that are not work related. He finds them spending far too much time on social networking sites. However, instead of reporting this, he advises the new employees to refrain from using those sites in the future. Moreover, he tells Alexa that they were doing their work effectively. In this scenario, Rolando has engaged in
Answer:
Explanation:
From the question we are informed about Rolando, who is a senior employee, has been asked to monitor the activities of some new employees and report to her if he finds them engaged in activities that are not work related. He finds them spending far too much time on social networking sites. However, instead of reporting this, he advises the new employees to refrain from using those sites in the future. Moreover, he tells Alexa that they were doing their work effectively. In this scenario, Rolando has engaged in Filtering.
Filtering can be regarded as distortion as well as withholding of information so that reactions of a person or entity can be managed. It can be explained as process whereby some information is been hide to higher rank workers by
employee, whereby this is done so that
employees that committed a fault is not affected. Filtering serves as an act that middle-range workers can take to give
enough confidence to their surbodinates so that they can correct themselves which is alternative of punishing them.
Conoly Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent and at 24 percent? Year 1, 2, 3, and 4 Cash Flow $1,200, 600, 855 and 1,480 respectively
Answer:
Present Value when discount rate is 10% = $3240.01
Present Value when discount rate is 24% = $2432.40
Present Value when discount rate is 18% = $2,731.61
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = $1,200
Cash flow in year 2 = 600
Cash flow in year 3 = 855
Cash flow in year 4 = 1,480
Present Value when discount rate is 10% = $3240.01
Present Value when discount rate is 24% = $2432.40
Present Value when discount rate is 18% = $2,731.61
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Competitive priorities define the dimensions on which companies should excel in producing their products or services. Which one of the following statements is true?
a. A firm offering little customization cannot compete simultaneously on the dimension of consistent quality.
b. A firm that competes on the dimension of customization tends to have operating systems that are inflexible.
c. It is impossible for a firm to improve cost and quality simultaneously.
d. A firm that competes on the dimension of volume flexibility is more likely to manufacture products that experience a seasonal demand variation.
Answer:
b. A firm that competes on the dimension of customization tends to have operating systems that are inflexible.
Explanation:
It is correct to say that a company that competes in the customization dimension tends to have inflexible operating systems, because product customization is a different process from mass production, as the demand is different, the customization process takes longer and therefore requires inflexible operating systems.
Which of the following statements is the most correct?
a. A borrower's long-term debt typically has a higher interest rate than its short-term debt.
b. Debt that is infrequently traded (less liquid) typically has a lower interest rate than similar but highly traded debt.
c. Variable (floating) rate debt is more prevalent when long-term borrowing rates are low.
d. Variable (floating) rate debt should never be used by healthcare providers because it is too risky.
e. Fixed interest rate debt is more prevalent when long-term borrowing rates are high.
Answer:
A
Explanation:
i think it has been explain according to the option
Chad is the founder of a firm producing self-driving vehicles. Because the industry is so new and chaotic, Chad favors a top-down strategic planning approach in which he exerts strong control over all aspects of the business, from product development and design to manufacturing and marketing. What is wrong with this scenario?
a. The self-driving vehicle industry is changing too much for the top- down approach to be effective.
b. The top-down approach can only be applied to specific business functions.
c. The top-down approach leaves other employees uncertain about their roles in the company.
d. The top-down approach is expensive to maintain, leaving the company at a competitive disadvantage.
Answer:
A)The self-driving vehicle industry is changing too much for the top-down approach to be effective.
Explanation:
Top-down analysis can be regarded as utilization of comprehensive factors to serve as basis for making decision . This top-down approach helps in
identifying the big picture as well as all of its components. It usually serves as
driving force as regards the end goal.
Top-down is commonly used in domain of macroeconomics.
Hence, the problem here is self-driving vehicle industry is changing too much for the top-down approach to be effective.
a. Billed customers for fees earned, $112,700.
b. Purchased supplies on account, $4,500.
c. Received cash from customers on account, $88,220.
d. Paid creditors on account, $3,100.
e. On October 12, fees earned on account were $14,600.
Required:
Journalize this transaction.
Answer:
C.
Explanation:
Waterway Industries started the year with total assets of $314000 and total liabilities of $254000. During the year the business recorded $626000 in revenues, $327000 in expenses, and dividends of $61000. The net income reported by Waterway Industries for the year was
Answer:
the net income reported by Waterway Industries for the year was $299,000
Explanation:
The computation of the net income reported is as follows:
As we know that
Net income = Revenue - expenses
= $626,000 - $327,000
= $299,000
hence, the net income reported by Waterway Industries for the year was $299,000
The same should be considered
On January 2, 2017, the board of directors of Michael declared a 10% stock dividend to be distributed on February 15, 2017. The market price of Michael Company's common stock was $75 per share on January 2, 2017. On the date of declaration, the retained earnings account should be decreased by
Answer:
the decrease in the value of the retained earning is $172,500
Explanation:
The computation of the decrease in the value of the retained earning is given below:
The dividend of the stock is
= (25,000 shares - 2,000 shares) × 10% × $75
= $172,500
Since there is the stock dividend of $172,500 so it ultimately reduced the retained earning account by $172,500
Which of the following is an example of a mixed cost?
a. electricity costs of $3 per kilowatt-hour
b. salary of a factory supervisor
c. rental costs of $10,000 per month plus $0.30 per machine hour of use
d. straight-line depreciation on factory equipment
Answer:
C
Explanation:
Mixed cost is a cost that consists of both fixed cost and variable cost
Fixed costs are costs that do not vary with output. e.g., rent, mortgage payments, depreciation
Variable costs are costs that vary with production
An example of variable cost is electricity costs of $3 per kilowatt-hour. If the factory is locked down, no electricity cost would be incurred.
The rental costs of $10,000 per month plus $0.30 per machine hour of use consists of both a fixed cost and a variable cost
the fixed cost is 10,000
the variable cost is $0.30 per machine hour
Suppose a firm has an annual expenses of $170,000 in wages and salaries, $75,000 in materials, $60,000 in rental expense, and $5,000 in interest expense on capital. The owner-manager does not choose to pay himself, but he could receive income of $30,000 by working elsewhere. The firm earns revenues of $420,000 per year.
1. What are the annual economic costs for the firm described above?
$310,000.
$320,000.
$340,000.
$400,000.
2. What is the economic profit for the firm described above?
$10,000.
$20,000.
Loss of $80,000.
$80,000.
3. To receive a normal profit the firm described above would have to:
Reduce expenses by $10,000.
Earn $80,000 more in revenue.
Earn $80,000 less in revenue.
Earn $310,000 more in revenue.
Answer:
1. The annual economic costs for the firm described above is:
= $340,000.
2. The economic profit for the firm described above is:
= $80,000.
3. To receive a normal profit the firm described above would have to:
None of the above.
Explanation:
a) Data and Calculations:
Wages and salaries expenses = $170,000
Cost of materials = $75,000
Rental expense = $60,000
Interest expense on capital = $5,000
Total expenses = $310,000
Opportunity cost = $30,000
Total costs = $340,000
Revenue per year = $420,000
1. The annual economic costs for the firm described above is:
= $340,000 ($310,000 + $30,000).
2. The economic profit for the firm described above is:
= $80,000 ($420,000 - $340,000).
3. To receive a normal profit the firm described above would have to:
None of the above.
The normal profit = $110,000 ($420,000 - $310,000)
A company had net income of $43,000, net sales of $380,500, and average total assets of $220,000. Its profit margin and total asset turnover were, respectively:
a. 11.3%; 1.73
b. 11.3%; 19.5
c. 1.7%; 19.5
d. 1.7%; 11.3
d. 19.5%; 11.3
Answer:
11.3%, 1.73
Explanation:
Net income= 43,000
Net sales= 380,500
Total assests= 220,000
Therefore profit margin can be calculated as follows=
Net income/sales
= 43000/380,500
= 0.113×100
= 11.3%
Total assets turnover can be calculated as follows
= 380,500/220,000
= 1.73
the Hence profit margin is 11.3% and total assets turnover is 1.73
Mary is currently buying apples and oranges such that the last unit of apples has 30 units of utility and the last unit of oranges has 40 units of utility. She has allocated her entire budget. If the price of an apple is 10 cents and the price of an orange is 20 cents, to maximize her utility, what should Mary do
Answer:
Buy more apples and fewer oranges
Explanation:
Utility is defined as the level of enjoyment or satisfaction that a person gets from consumption of a good or service.
Consumers logically try to maximise utility.
In the given instance we need to get the level of utility for apples and oranges to see which has more utility per unit cash spent.
For apples utility per cash spent = 30 units of utility ÷ 10 cents= 3 utility per cent
For oranges utility per cash spent = 40 units of utility ÷ 20 cents = 2 utility per cent
As apples have a higher utility per cent spent, it will be best Mary buys more apples and fewer oranges
Below is budgeted production and sales information for Best Dog Collar Company for the month of December:
Product CCC Product DDD
Estimated beginning inventory 30,000 units 18,000 units
Desired ending inventory 32,000 units 15,000 units
Region I, anticipated sales 320,000 units 500,000 units
Region II, anticipated sales 190,000 units 130,000 units
The unit selling price for product CCC is $5 and for product DDD is $12. Budgeted sales for the month are:
a. $9,692,000
b. $8,680,000
c. $10,110,,000
d. $9,010,000
Herr Corporation has 3,000 shares of 7%, $100 par value preferred stock outstanding at December 31, 2019. At December 31, 2019, the company declared a $105,000 cash dividend. Determine the dividend paid to preferred stockholders and common stockholders under each of the following scenarios.
The preferred stock is noncumulative, and the company has not missed any dividends in previous years.
1. The dividend paid to preferred stockholders ____________
2. The dividend paid to common stockholders _____________
Answer and Explanation:
The computation is given below:
a. For preferred stockholders
= 3000 shares × $100 × 7%
= $21,000
b. For common stockholders
= $105,000 - $21,000
= $84,000
In this way it should be calculated
The same should be considered and relevant
Meghan, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2020, she leases an office building to use in her business for $157,350 for an 18-month period. To obtain this favorable lease rate, she pays the $157,350 at the inception of the lease.
How much rent expense may Maud deduct on her 2020 tax return? Round any calculations to two decimal places and round the final answer to the nearest dollar.
$
Answer:
Meghan Sole Proprietorship
The rent expense that Meghan may deduct on her 2020 tax return is:
= $96,158.
Explanation:
a) Data and Calculations:
February 1, 2020: Rent Expenses $157,350 Cash $157,350
Rent Expenses for 2020 = $157,350 * 11/18 = $96,158
b) The actual cash payment for rent should be prorated to the months in 2020 for which the rent was consumed. This gives 11 months (from February 1, 2020 to December 31, 2020).
waupaca company establishes a $350 petty cash fund on september 9. on september 30, the fund shows $66 in cash along with receipts for the following expenditures: transportation-in, $53; postage expenses, $55; and miscellaneous expenses, $133. the petty cashier could not account for a $3 shortage in the fund. the company uses the perpetual system in accounting for merchandise inventory. prepare (1) the september 9 entry to establish the fund, (2) the september 30 entry to reimburse the fund, and (3) an october 1 entry to increase the fund to $340.
Answer:Please see explanation column.
Explanation:
Being fund is established
Date Account titles and explanation Debit Credit
September 9 Petty cash $350
To Cash $350
2.Being fund reimbursement
Date Account titles and explanation Debit Credit
September 30 transportation-in, $53
Postage expense $55
Miscellaneous expenses $133
Cash shortage $3
To Cash $244
3.Using $380 to account for the increase instead of $340 given which i think is an error.
Date Account titles and explanation Debit Credit October 1 Petty cash ($380 - $350) $30
To Cash $30
