The Bank of Canada's decisions that raised the overnight rate from 0.5 percent to 1 percent might have been influenced by A. the rising inflation rate and falling unemployment rate.
The Bank of Canada's decisions that raised the overnight loans rate from 0.5 percent to 1.0 percent might have been influenced by the rising inflation rate and falling unemployment rate. As the unemployment rate decreased, it indicated a stronger labor market and increased economic activity, which could lead to higher inflation. The Bank of Canada may have raised the overnight loans rate to prevent inflation from exceeding their target range of 1-3 percent. By raising interest rates, borrowing becomes more expensive, which can help to cool down spending and inflation. Additionally, a higher overnight loans rate can attract foreign investment and strengthen the value of the Canadian dollar, which can also help to control inflation.
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Mario is in charge of his department's planning and organizing. he also allocates resources for his department. which function does he fill for his department?
Mario is in charge of his department's planning and organizing. he also allocates resources for his department. The function that he can be said to fulfill in this department would be management function.
What is meant by management function?This is the term that is used to refer to all of the work that the managers of a business would have to put in daily in order to get the daily operation of the business running.
These operations would have to be planning, organizing and the control of resources. Hence we can ay that The function that he can be said to fulfill in this department would be management function.
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Question 5 of 10
What could consumers do to help their community?
Consumers in various ways can help their community:
Promote Local Business- One of the most amazing ways of supporting your local area is to assist different organizations nearby. Purchase nearby as frequently as could be expected and saved a region of your site to connection to your neighborhood companies. Cross organizing with non contending organizations with comparative business sectors assists you with contacting more individuals and assist with outing other neighborhood entrepreneurs very much like you.Sponser an Event- Supporting a member in a neighborhood long distance race can be an extraordinary method for showing support , particularly on the off chance that you can uphold your own representatives who are partaking in such occasions.Adopt a Brick- Infrequently new urban structures will offer nearby occupants the choice of buying a block or stone,either on a walkway or building . Such a buy offers you the chance to add to advance while likewise partaking in a little exposure.To learn more about consumers from the given link:
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one drawback of the concentration strategy is that the organization is vulnerable to industry and other external environmental shifts.
- True - False
The statement "one drawback of the concentration strategy is that the organization is vulnerable to industry and other external environmental shifts" is True. Explanation:
A concentration strategy involves focusing on a single product, service, or market segment and leveraging resources to become the leading provider of that product, service, or segment.
This strategy is characterized by specialization and a focus on efficiency, which can lead to a competitive advantage in the market. However, one significant drawback of the concentration strategy is that it makes the organization vulnerable to industry and other external environmental shifts.
If the organization is heavily reliant on a particular market segment, changes in regulations or policies that impact that segment can harm the organization's profitability and growth. Therefore, while a concentration strategy can be useful in certain situations, it is essential to be aware of the risks associated with this strategy.
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Hammers, screwdrivers, drills, and saws are _____ a construction worker uses.
-tasks
-skills
-tools
-qualifications
Answer:
are a - tool - construction workers use
The Bake Shop (TBS) buys and sells cakes. To preserve freshness TBS donates cakes that have not been sold within 5 days to charitable organizations. To avoid waste TBS usually orders fewer cakes than it can sell. Sold out signs are frequently seen in the store. Even so, the cakes come in several flavors and occasionally some of the flavors do not sell out before the 5 day shelf life expires. Cakes cost $16 each to purchase and are sold for $22 each. During the most recent month TBS had customer orders for 28 cakes that could not be filled due to a lack of inventory. There were only 12 cakes that had to be donated to charity during the month. Based on this information the
Multiple Choice
cost of waste amounted to $264.
cost of waste amounted to $448.
opportunity cost amounted to $336.
opportunity cost amounted to $168.
Based on the information provided, the opportunity cost amounts to $424.
What is the cost of waste and opportunity cost based on the given information?To determine the cost of waste and opportunity cost for The Bake Shop (TBS), we need to analyze the information provided. In the most recent month, TBS had 28 customer orders that couldn't be fulfilled due to insufficient inventory. This means that 28 cakes could have been sold, resulting in a potential revenue of 28 cakes × $22 per cake = $616.
However, only 12 cakes had to be donated to charity. These cakes would have been unsold and would have resulted in a loss of 12 cakes × $16 per cake = $192. This represents the cost of waste.
The opportunity cost is the potential revenue TBS missed out on by not being able to fulfill the 28 customer orders. This amounts to 28 cakes × $22 per cake = $616. To calculate the opportunity cost, we subtract the cost of waste ($192) from the potential revenue ($616): $616 - $192 = $424.
Therefore, based on the information provided, the opportunity cost amounts to $424. None of the multiple-choice options provided matches this answer.
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what roles do self-interest, competition, and the state play in adam smith and david ricardo’s views of the market?
In the views of Adam Smith and David Ricardo, self-interest, competition, and the state play significant roles in the market.
Self-interest: Both Smith and Ricardo recognized self-interest as a fundamental driving force in the market. They believed that individuals, acting in their own self-interest, would seek to maximize their profits or utility, leading to productive economic activities and the efficient allocation of resources. Competition: Smith and Ricardo emphasized the importance of competition in the market. They argued that competition among buyers and sellers promotes efficiency, innovation, and lower prices. Through competition, businesses are incentivized to offer better products and services at competitive prices, ultimately benefiting consumers.
The State: While both economists advocated for limited government intervention, their views on the role of the state differed. Smith believed in minimal state intervention, emphasizing the concept of the "invisible hand" that guides market forces. On the other hand, Ricardo recognized the need for some government intervention, particularly in areas such as providing public goods, regulating monopolies, and protecting property rights. In summary, self-interest drives individuals to participate in economic activities, competition ensures efficiency and innovation, and the state plays a role in providing necessary regulations and public goods to support a functioning market economy.
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Is the externality positive or negative? Explain. Identify the socially optimum output. Explain how you determined your answer. Suppose that banana oil is produced by a profit-maximizing monopoly. Answer each of the following. I. Identify the unregulated firm’s output. Explain how you determined your answer. Ii. To produce the socially optimum output, should the government tax or subsidize the firms in the banana oil industry? If so, how much should the tax or subsidy be? Suppose that banana oil is produced in a perfectly competitive industry. Answer each of the following. I. Identify equilibrium output in the absence of regulation. Explain how you determined your answer. Ii. To produce the socially optimum output, should the government should tax or subsidize the firms in the banana oil industry? If so, how much should the tax or subsidy be?
The nature of the externality and the socially optimum output depend on the specific details of the banana oil industry, whether it is a profit-maximizing monopoly or a perfectly competitive market.
Determining the externality and socially optimum output in the banana oil industry requires more specific information. If banana oil production by a profit-maximizing monopoly generates negative externalities, such as pollution or resource depletion, the socially optimum output would be lower than the monopoly's output level. To achieve this, the government could impose a tax on the monopoly to reduce its output and internalize the external costs. The tax amount would depend on the magnitude of the externality. In a perfectly competitive market, where there may not be significant externalities, the equilibrium output is determined by the intersection of the industry's supply and demand curves. To achieve the socially optimum output, the government may not need to intervene if there are no significant externalities. If externalities exist, the government could tax or subsidize firms based on the magnitude of the externality to align the industry's output with the socially optimal level.
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How can Opportunity Costs affect your business environment?
Answer: Weighing opportunity costs allows the business to make the best possible decision. If, for instance, the company determines an alternative choice's opportunity cost is greater than what the company gains from its initial decision, the company can change its mind and pursue the alternative choice
I hope this was the answer you were looking for :3
Answer:
Considering the opportunity costs allow the business to make the best possible decision.
Explanation:
If, for example, the company determines an alternative choice's opportunity cost is greater than what the company gains from its initial decision, the company can change its mind and the alternative option.
perfect competition is a special case of monopolistic competition, which occurs when demand is perfectly inelastic.
T/F
False. Perfect competition is a distinct market structure that differs from monopolistic competition. It is characterized by many buyers and sellers, homogeneous products, perfect information, and price-taking behavior.
Perfect competition and monopolistic competition are two distinct market structures that have fundamental differences. Perfect competition is characterized by a large number of buyers and sellers, homogeneous products, perfect information, and price-taking behavior. In perfect competition, no individual buyer or seller has the power to influence the market price. Demand is not perfectly inelastic but rather determined by the interaction of market forces.
On the other hand, monopolistic competition is a market structure characterized by many firms competing with differentiated products. Each firm has some control over the price it sets due to product differentiation and brand loyalty. Demand in monopolistic competition is not perfectly inelastic but rather influenced by factors such as product differentiation, marketing efforts, and consumer preferences.
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Which of the following is a benefit of budgeting which helps a manager motivate employees and evaluate performance?
-Planning
-Coordination and Communication
-Rolling Budget
-Benchmarking
Benchmarking will be the correct answer
What is benchmarking?
Benchmarking is the practice of comparing your goods, services, and operations to those of businesses that are thought to be industry leaders in one or more areas. Even if they are in a different industry or serve a different clientele, benchmarking may provide you with the crucial insights you need to know how your company stacks up against others in a similar situation.
Organizations can find areas, systems, or processes that can be improved through incremental (continuous) or significant (business process re-engineering) changes by using benchmarking.
Technical and competitive benchmarking are two separate categories that have been established. To visualise the benchmarking review, Gantt charts and the House of Quality matrix are frequently utilised.
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The garment industry is an example of which type of production?
Answer:
What are the different production systems used in the garment industry?
Mostly used production systems in the garment industry are as follows.
Make Through System. ...
Progressive Bundle System. ...
Section Production System. ...
Modular Production System. ...
One Piece Flow System. ...
Overhead Production System (UPS -Unit Production system)
Explanation:
i think might help
shocking! a study conducted by the national university of singapore found that consumers worldwide spend per year as a result of pirated software. multiple choice question. $1 million $10 million $25 billion $20 million need help? review these concept resources.
The amount of money consumers worldwide spend per year as a result of pirated software, according to a study conducted by the National University of Singapore is $25 billion.
What is pirated software?Pirated software is an unauthorized reproduction, distribution, or use of copyrighted software. It can be distributed through various mediums, including disks, CDs, flash drives, peer-to-peer networks, or websites. It is illegal and may cause harm to the computer system.
What is the impact of using pirated software?Using pirated software has a negative impact on both individuals and organizations. Pirated software can expose a computer to viruses and other malicious software. It may cause a loss of data, system failures, and other problems. It can also harm the reputation of the individual or organization if discovered.
The use of pirated software also harms the software industry and the economy. It deprives the industry of revenue and profits, causing financial losses. It also affects innovation and creativity, as companies may not invest in new software if they are not making enough money from their existing software. As a result, the development of new and innovative software is slowed down, and the economy suffers.
What are the consequences of using pirated software?Using pirated software is illegal and may result in legal consequences. Individuals and organizations who use pirated software can be sued for copyright infringement. They may face penalties such as fines, damages, and legal costs. They may also be required to stop using pirated software and may even be prosecuted criminally.
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WHAT ARE TWO BENEFITS AND DRAWBACKS OF BEING A SOLE TRADER?
Explanation:
benefits of being a sole trader
The main benefit of being a sole trader is that you are your own boss and you can dictate the direction of the business.you keep all the profits andyou have maximum privacy.
drawbacks
Financing and business credit is harder to procurePotential credibility issuesuppose that buyers desire to purchase $200 billion of extra real output at each price level. what are the new equilibrium price level and level of real output?
Buyers desire to purchase $200 billion of extra real output at each price level. In this case, there is an increase in aggregate demand by $200 billion. This results in a shift in the aggregate demand curve to the right.
The equilibrium price level and level of real output can be found by graphing the aggregate demand and aggregate supply curves. The new equilibrium price level and level of real output can be found by using the aggregate demand and aggregate supply model. According to the Aggregate demand and supply model, equilibrium occurs at the point where the quantity of aggregate output supplied equals the quantity of aggregate demand.
According to the given information, the aggregate demand has shifted to the right. As a result, the new equilibrium price level and level of real output will increase. The graph for the aggregate demand and supply model is shown below:
The horizontal axis shows the level of real output, while the vertical axis shows the price level. The original equilibrium price level and level of real output are P1 and Y1, respectively. Due to an increase in aggregate demand, the demand curve shifts to the right from AD1 to AD2. This results in a new equilibrium at point B, where the price level is P2 and the level of real output is Y2.
Therefore, the new equilibrium price level is P2, and the level of real output is Y2.
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define the term harmful activities
PLEASE HELP!
If a company reported total sales of $59,919, cost of goods sold of $21,112, gross income of $38,807, operating expenses of $18,005 and a gross profit ratio of 65%, what was the company's operating income? (Round to the nearest dollar)
a) -$18,005
b) $20,802
c) $25,225
d) $38,807
Answer:
b) $20,802
Explanation:
Operating income, also called operating profit, is the income after deducting the operating expenses. In other words, it is gross profit minus operating expenses.
Operating expenses exclude taxes and interest.
Operating income will be calculated using the formula.
Gross profit -operating expenses = operating income
i.e,. Revenue- Costs of goods sold -operating expenses = operating income
=$59,919 - $21,112, -$18,005 =operating income
Operating income = $20, 802
What types of government policies might help to improve the unemployment situation for these would be job seekers?
Answer:The Works Progress Administration WPA. created during the Great Depression showed how a large-scale, federally funded, locally administered jobs program could address an employment crisis. Through a similar program today, state and local governments could use federal resources to help job centers, public schools, nonprofits, and private companies hire workers to address critical needs during and after the COVI-19 pandemic. These could include public health department staff, teachers’ aides in schools, child and elder care providers, and construction workers for housing and infrastructure projects
Explanation:
unemployment insurance is a(n) that is . in-kind benefit; not means-tested monetary transfer; not means-tested in-kind benefit; means-tested monetary transfer; means-tested
Unemployment insurance is a monetary transfer that is means-tested, meaning that an individual's eligibility and benefit amount are determined based on their income or financial situation.
Unemployment insurance is a program designed to provide financial assistance to individuals who have lost their jobs and meet certain eligibility criteria. It serves as a monetary transfer because eligible individuals receive regular payments or benefits to partially replace their lost income during their period of unemployment.
Unemployment insurance is means-tested, meaning that an individual's eligibility and benefit amount are determined based on their income or financial situation. Means-testing ensures that the benefits are targeted to those who need them the most, typically considering factors such as previous earnings, work history, and other financial resources.
Therefore, the correct description for unemployment insurance is a monetary transfer that is means-tested.
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You are an American, working for a US hospital. The hospital sells services to a French hospital. Given a depreciation of the Euro, your French subsidiary (the one that receives the revenues from the French Hospital) received a lesser income last year, although a clause in your contract stipulates adjustment payment in US dollars. Therefore, your subsidiary has a balance sheet loss, although your consolidated global result is positive. This type of foreign exchange risk is known as:
Answer:
translation exposure
Explanation:
Translation exposure is also known as translation risk. In this type of risk, the value of a company's assets, equities, income, or liabilities change due to changes in the exchange rate,
French subsidiary received a lesser income last year, although payment will be adjusted in US dollars as per the contract.
Due to this, the subsidiary has a balance sheet loss, although the consolidated global result is positive.
This type of foreign exchange risk is known as translation exposure.
What is a consumer demand
Answer:
a measure of consumers' desire for a product or service based on its availability.
On July 1, 2021, Bonita Industries issued 3500 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2021 and mature on April 1, 2031. Interest is payable semiannually on April 1 and October 1. What amount did Bonita receive from the bond issuance
Answer:
On July 1, Year 1, Howe Corp. issued 300 of its 10%, $1,000 bonds at 99 plus accrued interest.
The bonds are dated April 1, year 1 and mature on April 1, year 11. Interest is payable semiannually on April 1 and October 1.
What amount did Howe receive from the bond issuance?
a) $304,500
b) $300,000
c) $297,000
d) $289,500
a) $304,500
The amount received is the price of the bonds plus interest from April 1, the bond date, to July 1, the issue date:
Amount received = .99(300)($1,000) + .10(3/12 year)(300)($1,000) = $304,500
The second term in the above calculation uses 3/12 of a year, which is the portion of a year between April 1 and July 1.
In pure competition, producers compete exclusively on the basis of
a. selling identical items.
b. advertising heavily to promote their good.
c. producing the unique features of their good.
d. focusing on maintaining a positive image.
Answer:
a. selling identical items.
Explanation:
A pure competition market is characterized by many firms selling a homogeneous product in a market with many buyers. There are no dominant suppliers; hence no single or group of sellers can influence the price. Pure competition is also the perfect competition.
The key characteristics of pure competition are
There are many buyers and sellersAll firms sell an identical productAll sellers are price takers. None can influence pricesThere is intense competition due to the high number of sellersEase of entry and exit from the market.A. selling identical items.
How is a debit card different from a credit card?
A. A debit card is usually issued by a financial institution.
B. A debit card provides a way for people to make large purchases.
C. Spending on a debit card is limited to the funds available in an
account.
D. Spending can occur via a digital payment method.
Answer:
C
Explanation:
because thats wat ist is.- limited funds
Penny Cassidy is considering forming her own pool service and supply company, Penny's Pool Service & Supply, Inc. (PPSS). She has decided to incorporate the business to limit her legal liability. She expects to invest $ 20,000 of her own savings and receive 1,000 shares of common stock. Her plan for the first year of operations forecasts the following amounts at December 31, the end of the current year: Cash in bank, $ 2,900 ; amounts due from customers for services rendered, $ 2,300 ; pool supplies inventory, $ 4,600 ; equipment, $ 28,000 ; amounts owed to Pool Corporation, Inc. , a pool supply wholesaler, $ 3,500 ; note payable to the bank, $ 5,000. Penny forecasts first-year sales of $ 60,000 , wages of $ 24,000 , cost of supplies used of $ 8,200 , other administrative expenses of \,500 , and income tax expense of $ 4,000. She expects to pay herself a $ 10,000 dividend as the sole stockholder of the company.
Required: If Penny's estimates are correct, what would the following first-year financial statements look like for Penny's Pool Service & Supply (use Exhibits 1. 2,1. 3 , and 1. 4 as models)?
(c) Balance sheet
Based on Penny's estimates, the first-year financial statements would look like the following for Penny's Pool Service & Supply and show retained earnings of $9,300.
a) Penny's Pool Service & Supply
Income StatementFor the first year ended December 31
Sales $60,000
Wages $24,000
Supplies Expense 8,200
Administrative Expense 4,500 $36,700
Operating Income $23,300
Income tax expenses 4,000
Net Income $19,300
b) Penny's Pool Service & Supply
Statement of Retained EarningsFor the first year ended December 31
Net Income $19,300
Dividends $10,000
Retained earning $9,300
c) Penny's Pool Service & Supply
Balance SheetAs of December 31
AssetsCurrent Assets:
Cash $2,900
Accounts Receivable 2,300
Supplies Inventory 4,600
Total current assets $9,800
Equipment $28,000
Total assets $37,800
Liabilities and EquityCurrent liabilities:
Accounts Payable $3,500
Long-term liabilities:
Note Payable $5,000 $8,500
Equity:
Common Stock $20,000
Retained Earnings 9,300 $29,300
Total liabilities and equity $37,800
Data and Calculations:Cash $20,000 Common Stock $20,000
Forecasts at December 31:
Cash $2,900
Accounts Receivable $2,300
Supplies Inventory $4,600
Equipment $28,000
Accounts Payable $3,500
Note Payable $5,000
Sales $60,000
Wages $24,000
Supplies Expense $8,200
Administrative Expense $4,500
Income tax expenses $4,000
Dividends $10,000
Thus, the Retained Earnings for the forecast first year would be $9,300.
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Activity-based costing's primary benefit is that it provides Select one: A. absolutely accurate product costing information. B. data for external financial reporting purposes. C. more precise cost data for internal decision-making purposes. D. all of the above.
Option C. more precise cost data for internal decision-making purposes is correct option. The primary benefit of activity-based costing is that it provides more precise cost data for internal decision-making purposes.
Activity-based costing (ABC) is a costing methodology that assigns costs to specific activities and then allocates them to products or services based on their consumption of those activities. The primary objective of ABC is to provide a more accurate and detailed understanding of the costs involved in producing goods or delivering services. While ABC does not provide absolutely accurate product costing information, as costs are still subject to estimation and allocation, it does offer a more precise and granular view of cost data compared to traditional costing methods.
By identifying and assigning costs to specific activities, ABC enables organizations to understand the true cost drivers of their products or services. This information can then be used for internal decision-making purposes such as pricing, product mix analysis, process improvement, and resource allocation. ABC is primarily focused on providing relevant and reliable cost information for internal decision-making rather than external financial reporting purposes. Therefore, option C is the correct answer, stating that ABC provides more precise cost data for internal decision-making purposes.
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During 2017, some Fed officials were concerned about potential increases to expected inflation. They wanted to find a way to fight it. Raising interest rates was a policy under consideration. if the public revised their expectations about future inflation upwards, would that affect the short run aggregate supply curve? How and why? 10pts. i) Use the aggregate demand and supply diagram to illustrate your answer.10pts.
Yes, if the public revised their expectations about future inflation upwards, it would affect the short run aggregate supply curve. This is because an increase in expected inflation would lead to an increase in input costs, such as wages and raw materials, for firms.
As a result, firms would have to increase their prices to maintain their profit margins, leading to a leftward shift of the short run aggregate supply curve.
In the aggregate demand and supply diagram, this would be illustrated as a leftward shift of the short run aggregate supply curve. This would result in a higher equilibrium price level and a lower equilibrium level of output.
The increase in expected inflation would also lead to a decrease in real wages, which would reduce consumer spending and decrease aggregate demand. This would lead to a further decrease in output and an increase in the price level.
Therefore, the Fed's policy of raising interest rates would be an attempt to curb inflation by reducing aggregate demand and slowing down economic growth. However, this policy could also lead to a decrease in investment and consumption, which could further decrease output in the short run.
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Type the correct answer in the box. Spell all words correctly.
Which cost is dependent on production volume?
_____ cost is dependent on production volume.
Answer:
Variable costs
Explanation:
Variable costs are dependent on production output. The variable cost of production is a constant amount per unit produced. As the volume of production and output increases, variable costs will also increase.
Answer:
Variable cost
Explanation:
Your merchant fee is 2.5%. Your
customers paid you $500,000
through credit cards. What fee
must you pay the credit card
company?
$ [?]
The fee must you pay the credit card company is $12,500.
What is a credit card?A credit card is said to be a type of plastic money that allows an individual to purchase goods on credit and pay back the amount later on some specified rate of interest being charged on it.
In order to avoid excessive spending, one should keep in mind that if a credit card debt is left unpaid at the end of the credit limit, interest will be imposed on the remaining balance.
When a consumer uses their credit or debit cards to purchase goods or services from a business, the merchant's bank balance must pay transaction fees called merchant fees.
The calculation for merchant fees is
The merchant fee will be 2.5% of $500,000
=2.5/100 x $500,000
=0.025 x $500,000
=$12,500
Therefore, the amount paid as a fee will be $12,500.
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On March 1, 2021, Stratford Lighting issued 10% bonds, dated March 1, with a face amount of $690,000. The bonds sold for $678,000 and mature on February 28, 2041 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight-line method and its fiscal year ends December 31.
1. Prepare the journal entry to record the issuance of the bonds by Stratford Lighting on March 1, 2021
2. Prepare the journal entry to record interest on August 31, 2021
3. Prepare the journal entry to accrue interest on December 31, 2021.
4. Prepare the journal entry to record interest on February 28, 2022
Answer:
1. March 1, 2021
Dr Cash $678,000
Dr Discount on bonds payable $12,000
Cr Bonds payable $690,000
2. August 31, 2021
Dr Bond interest expense $34,800
Cr Discount on bonds payable $ 300
Cr Cash $34,500
3. December 31, 2021
Dr Bond interest expense $23,200
Cr Discount on bonds payable $200
Cr Bond interest payable $23,000
4. February 28, 2022
Dr Bond interest payable $23,000
Dr Bond interest expense $11,600
Cr Discount on bonds payable $100
Cr Cash $34,500
Explanation:
1. Preparation of the journal entry to record the issuance of the bonds by Stratford Lighting on March 1, 2021
Dr Cash $678,000
Dr Discount on bonds payable $12,000
($690,000-$678,000)
Cr Bonds payable $690,000
(Being to record issuance of the bonds is recorded)
2. Preparation of the journal entry to record interest on August 31, 2021
Dr Bond interest expense $34,800
Cr Discount on bonds payable $ 300 ($12,000/20*6/12 )
Cr Cash $34,500
($690,000 × 10% × 6/12)
(Being to record interest )
3. Preparation of the journal entry to accrue interest on December 31, 2021.
Dr Bond interest expense $23,200
($23,000+$200)
Cr Discount on bonds payable $200
($12,000/20 × 4 /12)
Cr Bond interest payable $23,000
($690,000* 10%× 4/12)
(Being to record accrue interest is recorded)
4. Preparation of the journal entry to record interest on February 28, 2022
Dr Bond interest payable $23,000
($690,000* 10%× 4/12)
Dr Bond interest expense $11,600
[($34,500+$100)-$23,000]
Cr Discount on bonds payable $100
($12,000/20*2/12)
Cr Cash $34,500
($690,000 × 10% × 6/12)
(Being to record interest is recorded)
mega corporation repurchased 1,000 shares of its $1 par value common stock for $8,000. the effect of this transaction on the accounting equation includes a(n) . (check all that apply.)
mega corporation repurchased 1,000 shares of its $1 par value common stock for $8,000. the effect of this transaction on the accounting equation includes a decrease in assets.
What is a decrease in assets?The asset account gets smaller as a corporation uses up or consumes an asset in its operations. Assets that a company consumes include money, supplies, receivables, and pre-paid expenses. For instance, if your small business paid $100 for a power payment, you might credit Cash by $100 to reduce the account.
Any asset reduction that provides a funding source counts as an inflow of cash. Decreases in accounts receivable show that money has been collected. Inventory reductions indicate that products have been sold.
Thus, it is decrease in assets.
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