Answer:
D. $605,500
Explanation:
The computation of the expected balance in retained earnings on the 2018 is shown below:
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
= $533,500 + $112,000 - $40,000
= $605,500
We simply applied the above formula so that the ending balance could arrive by considering all the items given in the question
Answer:
The correct answer is option C.
Explanation:
A decrease in the money supply would reduce the availability of credit in the market. The money supply curve will shift to the left. This would further cause the interest rate to increase.
This increase in the interest rate would increase the cost of borrowing. As a result, the cost of borrowing will increase. This will cause the planned investment to decline.
Since investment expenditure is a component of aggregate demand, a decline in the investment will cause the aggregate demand to decrease as well.
A cover letter is the professional communication .
Answer:
Date Particular Debit Credit
Jan 1, 2021 Cash $64,700
Discount on bond payable $5,930
Bond payable $70,000
Jun 30,2021 Interest expense $3,882
Discount on bonds payable $2,132
Cash $1,750
Workings:
Semi annual interest payment = 70,000 x 5% x 6/12
= $1,750
Interest expense on June 30, 2021 = Carrying value of bonds x Market interest rate
= 64,700 x 6%
= $3,882
Discount on bonds payable amortized on June 30, 2021 = Interest expense - Interest payment
= 3,882 - 1,750
= $2,132
