Answer:
<em>Android Products, Inc</em><em>.</em>
<em> </em><em>Journal Entries</em>
Date General Journal Debit Credit
Dec. 16 Cash $1,100
Notes Receivable $1,000
Interest Revenue $100
Answer:
Dynamic Weight Loss Co.
DYNAMIC WEIGHT LOSS CO.
Classified Balance Sheet as of June 30, 20Y7
Assets
Current Assets:
Cash $119,630
Accounts Receivable 26,100
Prepaid Insurance 8,400
Prepaid Rent 6,000
Supplies 11,200
Total current assets $171,330
Long-term Assets:
Land 375,000
Equipment 325,900
Accumulated Depreciation (32,600) 293,300
Total long-term assets $668,300
Total assets $839,630
Liabilities and Equity
Current Liabilities:
Accounts Payable $10,830
Salaries Payable 7,500
Unearned Fees 21,000
Total current liabilities $39,330
Equity:
Common Stock 180,000
Retained Earnings 620,300
Total equity $800,300
Total liabilities and equity $839,630
Explanation:
a) Data and Calculations:
Trial Balance as of June 30, 20Y7
Account Titles Debit Credit
Cash $119,630
Accounts Receivable 26,100
Prepaid Insurance 8,400
Prepaid Rent 6,000
Supplies 11,200
Land 375,000
Equipment 325,900
Accumulated Depreciation - Equipment $32,600
Accounts Payable 10,830
Salaries Payable 7,500
Unearned Fees 21,000
Common Stock 180,000
Retained Earnings 620,300
Total $872,230 $872,230
Answer:
1. decrease, $ 3 million, decrease, $ 15 million
2. TRUE
3. TRUE
Explanation:
1. The reverse requirement is given as r = 0.2
The money multiplier is 
Now when the monetary base is changed by $3 million, then the total money supply will change by 
.
Of the $ 15 mn, the reverse will change by $ 15 mn x 0.2 = $ 3 mn.
If Fed sells the government bond of $ 3 million, then the money supply will reduce and the economy's reverses will decrease by $ 3 million and the money supply will decrease by $ 15 million.
2. TRUE
Now if the bank reduces the reserve ratio but he bank maintains excess reserves, then the money multiplier = 
Therefore, the money multiplier will remain same, it will remain unchanged.
3. TRUE.
Since the money multiplier remains constant, the overall change in money supply will not increase. It remains the same.
Answer:
falls, the company is less likely to buy the equipment
Explanation:
There is an inverse relationship between interest or discount rate and present values of an investment,in that a higher interest rates brings about lower present values and vice versa.
Higher interest rate means that the cost of borrowing to fund the purchase of equipment is high, hence less profitable as the impact of higher interest expense on the income statement is a lower net income.
As a result, the company is less likely to go ahead with the planned purchase as the investment from a funding perspective is value-maximizing.
Answer:
sets a price floor above the equilibrium price.
Explanation:
Price floor is defined as a government imposed price regime that sets the minimum amount that suppliers can charge buyers for a particular good.
Suppliers are not allowed to charge below this price. For this strategy to be effective it needs to be a price that is above equillibrum price.
When price floor is above equillibrum price quantity supplied exceeds quantity demanded. This results in a surplus of goods and services.
The surplus effect is illustrated in the attached diagram.
