Answer: $40,000 loss
Explanation:
A balance sheet is also referred to as the statement of financial position and it is a summary of financial balances of an economic agent i.e individual or organization.
The amount that would be reported as accumulated other comprehensive income related to investments on the balance sheet at December 31, 2022 will be:
= 800,000 - $760,000
= $40,000
There will be a $40,000 loss because the fair value on 12/31/21 of $800,000 is higher than the fair value of $760,000 on 12/31/22.
what could occur if grease trap is not maintained
A company has net income of $7.10 million. Stockholders' equity at the beginning of the year is $35.05 million and, at the end of the year, it is $43.15 million. The only change to stockholders' equity came from net income. The return on equity ratio is approximately:
Answer:
Return on equity ratio 18.16%
Explanation:
Calculation for the return on equity ratio
This first step is to find the Average stock holder equity.
Using this formula
Average stock holder equity =Beginning stock holder equity + ending stock holder /2
Let plug in the formula
Average stock holder equity=$35.02+$43.15/2
Average stock holder equity =$78.17/2
Average stock holder equity =$39.085
Second step is to calculate for the return on equity ratio
Using this formula
Return on equity ratio=NET INCOME/STOCKHOLDERS EQUITY
let plug in the formula
Return on equity ratio=$7.10/$39.085
Return on equity ratio=0.18165 ×100
Return on equity ratio=18.16%
Therefore The return on equity ratio is approximately 18.16%
If the yield curve is upward sloping, then short-term debt will be cheaper than long-term debt. Thus, if a firm's CFO expects the yield curve to continue to have an upward slope, this would tend to cause the current ratio to be relatively low, other things held constant.
A. True
B. False
Answer:
A. True
Explanation:
As per the given situation, if the yield curve is sloping upwards, it indicates that short-term interest rates are smaller than long-term interest rates.
In this case the bonds have an opposite relationship between the bond price and interest rates and If the short-term rates are lower then the value of the short-term bonds which includes the current liabilities, is higher. Short term bonds are loans to be settled in one.
As we know that
Current ratio = Current assets - Current liabilities
Current liabilities include short-term debt, hence the short-term value is higher as a result of a low current ratio.
Therefore the given statement is true
At the level of output at which a single-price monopolist maximizes profit, price is Group of answer choices
Answer:
Greater than marginal cost.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. It is also known as oligopoly, wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
Also, a single-price monopolist is an individual or seller that sells each unit of its products to all its customer at the same price. Hence, a single-price monopolist doesn't engage in price discrimination among its customers (buyers).
At the level of output at which a single-price monopolist maximizes profit, price is greater than marginal cost because the marginal revenue would be below the demand curve.
However, if the marginal cost is greater than the price, the monopolist will not make any profit.
In a nutshell, profit maximization for the single-price monopolist occurs at the point where marginal cost is equal to marginal revenue (MC = MR) on the graph of price (P) against quantity (Q) of goods.
Characteristics of competitive markets The model of competitive markets relies on these three core assumptions:
1. There must be many buyers and sellersâa few players can't dominate the market.
2. Firms must produce an identical productâbuyers must regard all sellers' products as equivalent
. 3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry. The first two conditions imply that all consumers and firms are price takers.
While the third is not necessary for price-taking behavior, assume for this problem that a market cannot maintain competition in the long run without free entry.
Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not. Scenario Competitive?
The government has granted the U.S. Postal Service the exclusive right to deliver mail.
There are hundreds of high school students in need of algebra private teachers services in Dallas. Dozens of companies offer private teaching services, and the parents who seek out private teachers view the quality of the at the different companies to be largely the same.
There are hundreds of colleges that serve millions of students each year. The colleges vary by location, size, and educational quality, which enables students with diverse preferences to find schools that match their needs.
A few major airlines account for the vast majority of air travel. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.
Answer:
The correct answers are:
First Scenario: It is not a perfect competitive market
Second Scenario: It is a perfect competitive market
Third Scenario: It is not a perfect competitive market
Foruth Scenario: It is not a perfect competitive market
Explanation:
First Scenario: The fact that the government has interfere with the market and make it impossible for other companies to operate in there then that market refers to a monopoly where the only seller is the U.S. Postal Service and therefore there can not be another companies selling in the market and that is why it is not a perfect competitive market.
Second Scenario: The fact that there are a lot of buyers and sellers and that the product is perceived as the same and therefore that this one is homogeneous to every consumer makes this market a perfect competitive one.
Third Scenario: The fact that the colleges vary on many variables such as location, size and educational quality makes it impossible to be a competitive market because there is not a homogenoues product but instead the buyers can choose among those colleges due to their differences and needs.
Fourth Scenario: The fact that there are only a few airlines and not many makes it impossible for the market to a be a perfect competitive one and therefore that this market is actually an oligopoly preferently because the buyers will choose mostly by price.
Sheffield Corp. manufactures customized desks. The following pertains to Job No. 953: Direct materials used $26800 Direct labor hours worked 400 Direct labor rate per hour $16.00 Machine hours used 300 Applied factory overhead rate per machine hour $30.00 What is the total manufacturing cost for Job No. 953?
Answer:
The answer is $42,200
Explanation:
Direct materials used by Sheffield Corp = $26,800
Direct labor hours used Sheffield Corp = 400 x $16.00
= $6,400
Factory overhead cost Sheffield Corp = 300 x $30.00
= $9,000
The total manufacturing cost for Job No. 953 incurred by Sheffield Corp is therefore,
$26,800 + $6,400 + $9,000
= $42,200
Gelb Company currently manufactures 41,000 units per year of a key component for its manufacturing process. Variable costs are $4.05 per unit, fixed costs related to making this component are $83,000 per year, and allocated fixed costs are $78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.50 per unit. Calculate the total incremental cost of making 41,000 units and buying 41,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier
Answer and Explanation:
1. The computation of total incremental is shown below:-
Incremental Costs to Make
Relevant Amount Relevant Fixed Total Relevant
Per Unit Costs Costs
Variable Cost
Per Unit $4.05 $166,050
(41,000 × $4.05)
Fixed manufacturing
cost $83,000 $83,000
Total incremental
cost to make $249,050
Incremental Costs to Buy
Purchase Price Relevant Fixed Total Relevant
Per Unit Costs Costs
Purchase Price
Per Unit $143,500
($3.50 × 41,000)
Total Incremental Cost to Buy $143,500
2. The company should buy from the outside supplier as its a lower and the total incremental cost is $143,500
what is the difference between buy or sell
Answer:
I hope this helps you
Explanation:
Buying also called purchasing isobtain in exchange for payment.
Selling is the act of giving or handing over something in exchange for money
MARK ME AS BRAINLIEST
Answer:
Buy is when you get a thing in exchange of money and sell is when you get money in exchange of a thing. In selling you gain money and in buying you lose money.
Explanation:
On January 1, 2010, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,085. During the first 11 months of the year, bad debts expense of $21,937 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2010, was $9,919.Required:(a) What was the total of accounts written off during the first 11 months? (Hint: Make a T-account for the Allowance for Bad Debts account.)Bad debt write offs $(b) As the result of a comprehensive analysis, it is determined that the December 31, 2010, balance of the Allowance for Bad Debts account should be $9,450. Show the adjustment required in the journal entry format.Allowance for bad debt Debit $Bad debt expenses Credit $
Answer:
(a) What was the total of accounts written off during the first 11 months?
bad debts written for the first 11 months = allowance for bad debt accounts January 1 balance + bad debt expense - allowance for bad debt accounts November 30 balance = $13,085 + $21,937 - $9,919 = $25,103
(b) As the result of a comprehensive analysis, it is determined that the December 31, 2010, balance of the Allowance for Bad Debts account should be $9,450. Show the adjustment required in the journal entry format.Allowance for bad debt Debit $Bad debt expenses Credit $
to determine the amount of bad debt expense that must be adjusted, we must subtract the estimated balance in December 31 from the balance in November 30 = $9,919 - $9,450 = $469. Since the November 30 amount is larger, it means that we over estimated our bad debt expense and it must be reduced:
Dr Allowance for doubtful accounts 469
Cr Accounts receivable 469
Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:
1. Andrea invested $13,500 cash in the business.
2. Andrea contributed $20,000 of photography equipment to the business.
3. The company paid $2,100 cash for an insurance policy covering the next 24 months.
4. The company received $5,700 cash for services provided during January.
5. The company purchased $6,200 of office equipment on credit.
6. The company provided $2,750 of services to customers on account.
7. The company paid cash of $1,500 for monthly rent.
8. The company paid $3,100 on the office equipment purchased in transaction #5 above.
9. Paid $275 cash for January utilities.
Based on this information, the balance in the A. Apple, Capital account reported on the Statement of Owner's Equity at the end of the month would be:__________.
a. $31,400.
b. $39,200.
c. $31,150.
d. $40,175.
e. $30,875.
Answer:
2356
Explanation:
3546478967654322 321
Disposal of Fixed Asset Equipment acquired on January 6 at a cost of $287,000, has an estimated useful life of 8 years and an estimated residual value of $37,400. a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Purchasing cost= $287,000
Useful life= 8 years
Estimated residual value= $37,400
To calculate the annual depreciation under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (287,000 - 37,400) / 8
Annual depreciation= $31,200
Depreciation remains constant during the useful life of the asset.
We can calculate exactly the annual depreciation for the first year.
Year 1= (31,200/365)*360= $30,772.60
Kramer Manufacturing produces blenders. Its total fixed costs are $30,000. Its variable costs are $55.00 per blender. As production of blenders increases (within the relevant range), fixed costs will
Answer:
As the production of blenders increases, unitary fixed costs decreases.
Explanation:
Its total fixed costs are $30,000. Its variable costs are $55.00 per blender.
On unitary bases, variable costs remain constant. On the contrary, fixed costs vary at a unitary level. Now, the same amount of costs is divided by a larger number of units.
As the production of blenders increases, unitary fixed costs decreases.
Carlota Company estimates that the marginal cost of manufacturing its Professional Series guitars is given by the following in dollars/month when the level of production is x guitars/month.
C '(x) = 0.008x + 90
The fixed costs incurred by Carlota are $8500/month. Find the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month.
Answer:
C(x) = 0.004x^2 + 90x + $8,500
Explanation:
In order to find the to monthly cost C(x) incurred, the marginal cost C '(x) = 0.008x + 90 will have to be integrated using integral calculus as follows:
[tex]\int\limits {0.008x +90} \, dx = C(x) = \frac{0.008}{2}x^{2} +90 +C[/tex]
Where C is the constant or fixed costs
The equation above can be further solved as follows:
[tex]C(x) =0.004x^{2} +90x+C[/tex]
Since fixed costs is $8500/month, we substitute for C to obtain the the total monthly cost C(x) incurred by Carlota in manufacturing x guitars/month as follows:
C(x) = 0.004x^2 + 90x + $8,500
In your opinion which causes of work stress, or organizational stressors, are likely to be among the most common experienced by air traffic controllers? Explain your reasoning.
Answer:
There are four types of organizational stressors: task demands, physical demands, role demands, and interpersonal demands.
For air traffic controllers, task demands are probably the most common organizational stressor that they experience.
Among the task demands, we have the need of quick decisions, critical decisions, and the fact that some information may be incomplete.
The job of an air traffic controller is complex, difficult, requires taking quick, and specially, critical decisions all the time. A bad decision by a traffic controller can be very problematic, and even prove fatal, because of the delicate nature of the job. For all these reasons, air traffic controllers are likely to be subjected to this specific organizational stressor.
The Fridge-Air Company's preferred stock pays a dividend of $4.50 per share annually. If the required rate of return on comparable quality preferred stocks is 14 percent, calculate the value of Fridge-Air's preferred stock.
Answer:
Present value = $32.1428 rounded off to $32.14
Explanation:
The preferred stock is a stock that pays a constant dividend and after equal interval of time for an indefinite period. Thus, it is like a perpetuity. The formula for the present value of perpetuity is,
Present value = Cash flow / r
Where,
r is the required rate of returnIn case pf preferred stock, the cash flow is the dividend paid by the preferred stock.
So, the value of the preferred stock is,
Present Value = 4.5 / 0.14
Present value = $32.1428 rounded off to $32.14
Accrued Product Warranty Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $211,000 for January. On February 7, a customer received warranty repairs requiring $170 of parts and $70 of labor. a. Journalize the adjusting entry required at January 31, the end of the first month of the current fiscal year, to record the accrued product warranty. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the warranty work provided in February. If an amount box does not require an entry, leave it blank.
Answer:
a.
Warranty Expenses $6,330 (debit)
Provision of Warranty Expense $6,330 (credit)
b.
Provision of Warranty Expense $240 (debit)
Raw Materials : Parts $170 (credit)
Labor $70 (credit)
Explanation:
Entry to record the warranty estimate for the year :
Hint : Recognize an Expense : Warranty Expenses and a Liability : Provision of Warranty Expense
Warranty Expenses $6,330 (debit)
Provision of Warranty Expense $6,330 (credit)
Warranty Expenses Calculation = $211,000 × 3% = $6,330
When customer received warranty cost
Hint : Utilize the Provision that had been previously recognized.
Provision of Warranty Expense $240 (debit)
Raw Materials : Parts $170 (credit)
Labor $70 (credit)
Jing and Tim have parking spaces next to each other at the apartment complex where they live. Tim claims that Jing dented his car when she was driving out of her space. They are negotiating with each other, trying to resolve this dispute. This type of negotiation tends to (select one):________
be adversarial.
look to the past.
be interest-based.
all of the above.
two of the above.
none of the
Answer:
be interest-based
Explanation:
An interest based negotiation is the one that that parties involved seek a win-win resolution to their dispute. In this type of negotiation, the position of both parties are carefully explored so that a mutually beneficial agreement will be reached.
The disputants in this type of negotiation focus on settling their dispute amicably, such that no one losses. The interest of each party is protected here.
With regard to the above, Jing and Tim is trying to resolve their dispute through an interest based negotiation.
Lincoln Corporation used the following data to evaluate their current operating system. The company sells items for $12 each and used a budgeted selling price of $12 per unit. Actual Budgeted Units sold 48,000 units 34,000 units Variable costs $170,000 $156,000 Fixed costs $42,000 $57,000 What is the static−budget variance of operating income?
Answer:
Static−budget variance of operating income is $169,000F
Explanation:
Actual Budgetet
Sales $576,000 $408,000 $168,000
Variable cost $170,000 $156,000 $14,000
Contribution margin $406,000 $252,000 $154,000
Less: Fixed cost $42,000 $57,000 -$15,000
Net Income / (Loss) $364,000 $195,000 $169,000 Favourable
Workings
Sales: Actual 48,000 units * $12= 576,000
Budgeted 34,000 units * $12= 408,000
4. Operating Cash Flow [L02] In comparing accounting net income and operating cash flow, name two items you typically find in net income that are not in operating cash flow. Explain what each is and why it is excluded in operating cash flow.
Answer:
1. Depreciation or Amortization of Assets
2.Profit or Loss on sale of Assets
Explanation:
Operating Cash Flow is very different to Net Income. The earlier represent cash movement and the latter represent profit movement.Cash and profit literally are different.
So in the profit calculation you would find some non-cash items that include estimate of depreciation expense or amortization cost of intangible assets or a profit or loss on sale of a PPE item.
Whereas in Operating Cash Flow determination only cash items are considered and all non-cash items are removed from profit of the year to reach an amount of Operating Cash Flow.
Demarco Lee invested $25,000 in the Camden & Sayler partnership for ownership equity of $25,000. Prior to the investment, equipment was revalued to a market value of $222,000 from a book value of $180,000. Kevin Camden and Chloe Sayler share net income in a 1:3 ratio. Required: a. Provide the journal entry for the revaluation of equipment. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Provide the journal entry to admit Lee.
Answer and Explanation:
The Journal entry is shown below:-
Equipment Dr, $42,000 ($222,000 - $180,000)
To Kevin Camden-Capital $10,500 ($42,000 × 1 ÷ (1 + 3))
To Chloe Sayler-Capital $31,500 ($42,000 × 3 ÷ (1 + 3))
(Being revaluation of equipment is credited)
Here we debited the equipment as it increased the assets and we credited the Kevin Camden-Capital and Chloe Sayler-Capital as it also increased the equity
2. Cash Dr, $25,000
To Demarco Lee-Capital $25,000
(Being admission is recorded)
Here we debited the cash as it increased the assets and we credited the Demarco Lee-Capital as it also increased the equity
Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,400 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today
Answer:
$3,315.13
Explanation:
To determine the amount of inheritance Marshall should invest today, we have to calculate the present value of $5,400.
PV = FV (1 + r)^-n
FV = Future value = $5,400
P = Present value
R = interest rate 5%
N = number of years 10
$5400(1.05^-10) = $3,315.13
I hope my answer helps you
Determining the worst payoff for each alternative and choosing the alternative with the "best worst" is the criterion called: Multiple Choice minimin. maximin. maximax. maximum likelihood. Bayes decision rule.
Answer: Maximin
Explanation:
With a Maximin strategy, a player in Game theory will aim to pick the alternative that yields the best payoff out of the worst payoffs that are possible.
First the worst pay-offs are determined and then the one that looks the best out of them is selected. The logic here is that the costs associated with the worst outcomes are less. So the person picks this outcome in other to reduce their costs but at the same time picking the best alternative that gives them the most savings on cost.
May 23 Cash 22,000 Common Stock 22,000 This journal entry will
Answer:
The Journal entry will Increase cash and as well Increase Common stock
Explanation:
Based on the information given where we have Cash of the amount of $22,000 and Common Stock of the amount $22,000 on May 23 this means that the journal entry will Increase cash and as well Increase Common stock. And since cash is an asset this mean that it will increased by debit While Common stock will increased by Credit becauee Common stock is a Capital .
Most Company has an opportunity to invest in one of two new projects. Project Y requires a $345,000 investment for new machinery with a six-year life and no salvage value. Project Z requires a $345,000 investment for new machinery with a five-year life and no salvage value. The two projects yield the following predicted annual results. The company uses straight-line depreciation, and cash flows occur evenly throughout each year. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)
Project Y Project Z
Sales $ 360,000 $ 288,000
Expenses
Direct materials 50,400 36,000
Direct labor 72,000 43,200
Overhead including depreciation 129,600 129,600
Selling and administrative expenses 26,000 26,000
Total expenses 278,000 234,800
Pretax income 82,000 53,200
Income taxes (38%) 31,160 20,216
Net income $ 50,840 $ 32,984
Compute each projectâs annual expected net cash flows.
Project Y Project Z
Determine each projectâs payback period.
Payback Period
Choose Numerator: / Choose Denominator: = Payback Period
/ = Payback period
Project Y =
Project Z =
Compute each projectâs accounting rate of return.
Accounting Rate of Return
Choose Numerator: / Choose Denominator: = Accounting Rate of Return
/ = Accounting rate of return
Project Y
Project Z
Determine each projectâs net present value using 6% as the discount rate. Assume that cash flows occur at each year-end. (Round your intermediate calculations.)
Project Y
Chart values are based on:
n =
i =
Select Chart Amount x PV Factor = Present Value
=
Net present value
Project Z
Chart values are based on:
n =
i =
Select Chart Amount x PV Factor = Present Value
=
Net present value
Answer:
Project Y Project Z
(6 years) (5 years)
investment: -$345,000 -$345,000
cash flows:
net income after taxes $50,840 $32,984
+ depreciation expense $57,500 $69,000
net cash flow per year = $108,340 $101,984
payback period:
investment / NCF = 3.18 years 3.38 years
accounting rate or return:
net income / investment = 14.74% 9.56%
net present value:
NCFs discounted at 6% = $187,743 $84,594
Project Y lasts for 6 years, while project Z lasts for only 5 years, that is the reason why there NPVs are so different.
can target costing be applied to the banking industry in Ghana
Answer:
The banking industry in Ghana can introduce target costing. However, its application is much more difficult due to the nature of banking services.
Introducing target costing in the banking industry in Ghana will eliminate non-value adding activities that increase the cost of banking in Ghana. It will enable Ghanaian customers to be charged competitive prices for the banking services that are rendered to them, with no more room for process wastages. The quality of services will increase coupled with lowered costs. The service processes will be improved as they will be more focused on the customers, and less on the staff, as it currently obtains in Ghana.
However, the nature of banking services makes introduction of target costing somehow difficult. These characteristics of banking services include: a) the production and consumption of banking services are coincidental, as the services are consumed when they are being produced; b) banking services are not storable like goods; c) banking services are not comparable, one unit to another; d) banking services are not tangible; e) ownership of banking services is not transferable; and f) there is not market price for banking services, except the price limits imposed by regulatory bodies.
Explanation:
Target costing in the banking industry in Ghana will take the form of first determining the market price for services that are acceptable to customers, establishing a target profit, and then designing banking services in such a manner that the costs do not exceed the target costs. The target cost will be the variance between the market price of a banking service and the target profit.
In response to the financial crisis that began in 2007, the government began to bail out banks deemed "too big to fail." Critics of this action argued that this would create the prospect of future bailouts and encourage banks to be fiscally irresponsible in the future. This illustrates
Answer:
The moral hazard problem
Explanation:
Moral hazard problem is defined as a situation where a party gets involved in a risky venture knowing that another party will incur the cost of failure.
For example if a borrower knows that he can take borrowed funds and default easily, he will tend to not pay back because the lender will bear the loss.
During the the financial crisis that began in 2007, the government began to bail out banks deemed "too big to fail."
This created fiscal irresponsibility in banks that knew if they are at risk of failing they will be bailed out by the government.
OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1 the company issues a one-year note for the amount of $5.2 million. Interest is payable at maturity.
Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:
Interest rate Fiscal year-end Interest expense
12% December 31
10% September 30
9% October 31
6% January 31
Answer:
In accrual basis accounting, expenses are recorded in the period when their matching revenues are obtained.
In this case, even if the full interest will be paid at maturity, interest expense will still be recorded in each period according to the information that we are given in the question.
Interest expense to be recorded by December 31
5,200,000 * 0.12 = 624,000 / 2 = 312,000
Interest expense to be recorded by September 30
5,200,000 * 0.10 = 520,000 * 3/12 = 130,000
Interest expense to be recorded by October 31
5,200,000 * 0.09 = 468,000 * 4/12 = 156,000
Interest expense to be recorded by January 31
5,200,000 * 0.06 = 312,000 * 7/12 = 182,000
Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $18 at the end of each month from his paper route collections. Matt is 12 years old and will use the money when he goes to college in 6 years. What will be the value of Matt's account in 6 years with his monthly payments if he is earning 6% (APR), 8 % (APR), or 14 % (APR)? What will be the value of Matt's account in 6 years with his monthly payments if he is earning 6% (APR)?
Answer:
$1,555.36
$1656.48
$2013.57
Explanation:
The formula for calculating future value = A (B / r)
B = [(1 + r)^ nm] - 1
FV = Future value
P = Present value
R =Monthly interest rate interest rate
N = number of years
1. 6% APR
$18[ (1 + 0.005)^72 - 1] / 0.005 = $1,555.36
2. 8% APR
$18[ (1 + 0,006667)^72 - 1] / 0.00667 = $1656.48
3. 14% APR
$18[ (1 + 0.011667)^72 - 1] / 0.011667= $2013.57
To loosen credit the Federal Reserve will: A sell U.S. Government securities to bank dealers with an agreement to buy them back at a later date B buy U.S. Government securities from bank dealers with an agreement to sell them back at a later date C sell Foreign Government securities to bank dealers with an agreement to buy them back at a later date D buy Foreign Government securities from bank dealers with an agreement to sell them back at a later date
Answer:
B buy U.S. Government securities from bank dealers with an agreement to sell them back at a later date
Explanation:
The Federal reserve uses open market operations to regulate liquidity in the economy. This eases or restricts how bank dealers can give credit.
To ease credit giving ability of bank dealers the Federal Reserve will buy US Government securities from bank dealers. This gives them extra money which they can give out as loans to their customers.
On the other hand when credit needs to be tightened, the Federal Reserve will mop up cash by selling Government securities to the bank dealers
Milano Gallery purchases the copyright on an oil painting for $300,000 on January 1, 2017. The copyright legally protects its owner for 12 more years. The company plans to market and sell prints of the original for 19 years. Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.
Answer and Explanation:
According to the situation, the solution of journal entries are as follows
1. Copyright Dr $300,000
To Cash $300,000
(being the purchase of copyright is recorded)
Here, we debited the copyright as it increased the assets and credited the cash as it decreased the assets
2. Amortization expense Dr ($300,000 ÷ 12 years) $25,000
To Accumulated amortization $25,000
(being the annual amortization is recorded)
Here we debited the amortization expense as it increased the expenses and credited the accumulated amortization as it decreased the assets