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2 years ago

Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity.

Business

1 answer:

Lady_Fox [76]2 years ago

5 0

Net change in assets = 15,000+ 75,000

= $90,000

<h3>1-Receive payment of $12,000 owed by a customer</h3>

No effect on asset
No effect on liability
No effect on equity

<h3>2-Buy $15,000 worth of manufacturing supplies on credit</h3>

Assets increase by $15,000
Liabilities increase by $15,000
No effect on equity

<h3>3-. Purchase equipment for $44,000 in cash</h3>

No effect on asset
No effect on liability
No effect on equity

<h3>4-Issue $75,000 in stock</h3>

Assets increase by $75,000
No effect on liability
Equity increases by $75,000

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Answer:

The dentist should get a new drill and it does not matter who pays for the new drill

Explanation:

Based on the information given the economically efficient outcome is that The dentist should get a new drill and it does not matter who pays for the new drill reason been that the building is been share by both the dentist and the radio station in which the electrical current from the dentist's drill was the one who causes static in the radio broadcast making them to lose some amount of money which means the dentist should go ahead and buy a new drill in which it does not matter who pays for the drill because they both shared the building .

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3 years ago

National Bank quotes the following for the British pound and the New Zealand dollar: Quoted Bid Price Quoted Ask Price Value of

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Answer:

$15.43

Explanation:

Following actions are required for triangular arbitrage:

Available: $ 10,000

Buy sterling pound @ 1 $ = 1.62 pounds and receive pounds 6172.84 upon conversion.

Now, sell these pounds and purchase NZ $ at the rate :

1 pound = NZ $ 2.95 and receive NZ$ 18209.87

Now, reconvert the above proceeds into US $ at the rate

1 NZ $ = $0.55 i.e sell NZ $ at this rate and receive US $ 10,015.4285

Hence profit from implementing triangular arbitrage is $10,015.43 - $10,000

= $15.43

Arbitrage refers to the prospect of earning a profit by utilizing the mispricing in two different financial markets. An arbitrageur never uses his own funds and always borrows.

Arbitrage works only in the scenario wherein the interest rate purchase parity (IRPT) does not hold good.

The strategy of arbitrage is best explained as "Buy at low price and sell at a high price".

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3 years ago

A local club is selling christmas trees and deciding how many to stock for the month of december. if demand is normally distribu

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Answer:

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3 years ago

Jones Company collected the following information to prepare its August bank reconciliation: Cash balance per books, August 31,

weqwewe [10]

Answer:

Adjusted cash balance as per books = $11,100

Explanation:

Given Cash balance as per books = $9,400

Add: Deposits in transit that is deducted by us but not added by bank thus added = $9,400 + $1,100 = $10,500

Add: Notes Receivables collected by bank but not added in books = $10,500 + $2,500 = $13,000

Less: Bank Service Charges as not deducted in books = $13,000 - $50 = $12,950

Less: Outstanding Checks as yet not cleared = $12,950 - $1,450 = $11,500

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3 years ago