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2 years ago

In a commercial bank's t-account, reserves and outstanding loans are recorded as?

Business

1 answer:

Vsevolod [243]2 years ago

3 0

In a commercial bank's t-account, reserves and outstanding loans are recorded as assets.

In economic accounting, "reserve" usually has a credit balance and may talk over with part of shareholders' fairness, a liability for envisioned claims, or contra-asset for uncollectible debts. A reserve can seem in any part of shareholders' fairness besides for contributed or simple proportion capital.

Reserves are a part of income or gain that has been allotted for a selected reason. Reserves are usually installed to shop for fixed property, pay bonuses, pay an anticipated prison settlement, pay for upkeep & protection and pay off debt.

Reserves – additionally called retained income – are portions of a commercial enterprise's profits that have been set aside to strengthen the enterprise's economic function.

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Botosan Factory has budgeted factory overhead for the year at $717,474, and budgeted direct labor hours for the year are 364,200

Mila [183]

Answer:

$652,858

Explanation:

Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity

= $717,474 ÷ 364,200

= $1.97 per direct labor hour

Allocated overheads = Predetermined overhead rate x Actual Activity

= $1.97 x 331,400 direct labor hours

= $652,858

therefore,

The overhead allocated for May is $652,858.

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3 years ago

1. Given the nominal interest rate of 17% and the expected inflation of 13%, then the value of the real interest rate is ___ ?

Veronika [31]

Answer:

According to fisher equation

(1+nominal Interest rate)=(1+real interest rate)(1+inflation)

1) So 1.17=(1+R)(1.13)

1+R=1.17/1.13

R=1.035-1

R=0.0353

Real interest rate = 3.53 percent

2) (1+NIR)= 1.03*1.04

1+ NIR= 1.072

NIR= 0.072

Nominal interest rate = 7.2 percent

A lender prefers a higher real interest rate as he will earn more money on the amount he has lend if the real interest rate is higher.

A borrower will prefer a lower real interest rate as he will have to pay lower interest payments on an amount if the real interest rate is lower.

Explanation:

6 0

3 years ago

Red Co. acquired 100% of Green, Inc. on January 1, 2012. On that date, Green had inventory with a book value of $42,000 and a fa

pav-90 [236]

Answer:

D) $15,000.

Explanation:

190,000 excess of value Building amortized over 10 years: 19,000

70,000 lesser value on Equipment amortized over 5 years: 14,000

We will amortize the building at a rate of 19,000 dollar per year

and we will amortize the equipment at 14,000 per year

the inventory as still is in the company's possesion will also need to be adjsuted

10,000 + 19,000 - 14,000 = 15,000

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3 years ago

Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units. Production cost

AfilCa [17]

Answer:

The correct answer is $95,400 lower than absorption costing.

Explanation:

According to the scenario, the given data are as follows:

Units manufactured = 33,100

Sold units = 27,800

So, Units in ending inventory can be calculated as follows:

Units in ending inventory = Units manufactured - Sold units

= 33,100 - 27,800 = 5,300 units

Now, Fixed manufacturing OH = $595,800

So, we can calculate the fixed manufacturing OH per unit by using following formula:

Fixed manufacturing OH per unit = $595,800 ÷ 33,100 = $18

So, Difference in net income for the year can be calculated as follows:

Net income difference = Fixed manufacturing OH per unit × Units in ending inventory

= $18 × 5,300 units = $95,400

Hence, The net income in variable costing is $95,400 which is lower than in absorption costing.

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3 years ago

According to MACRS tax rate table, which of the following classes uses straight-line depreciation?

Vinil7 [7]

The answer is Residential rental property

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3 years ago