Answer:
31 Dec 2021 Interest Expense $667 Dr
Interest Payable $667 Cr
Explanation:
The bond will pay the interest at maturity. However, following the accrual basis of accounting requires to match the revenue and expenses for a period and requires such transactions to be recorded in their respective periods. The year end adjusting entry will be made on 31 December 2021.
The interest expense for the period from August to December, 5 months, will be recorded on 31 December 2021 as interest expense and credit to interest payable.
The interest expense is = 16000 * 0.1 * 5/12 = $666.67 rounded off to $667
Answer:
- ,000 new apartments will make the equilibrium price = $1,500
- 10,000 new apartments will make the equilibrium price = $1,000
- 15,000 new apartments will make the equilibrium price = $500
Explanation:
<u>Rent</u> <u>Demand</u> <u>Supply</u>
2,500.00 10000 15000
2,000.00 12500 12500
1,500.00 15000 10000
1,000.00 17500 7500
500.00 20000 5000
The equilibrium quantity is 12,500 apartments with a $2,000 rent per month. If the government wants to lower the equilibrium rent price by increasing the supply of apartments, then it must build:
- 5,000 new apartments will make the equilibrium price = $1,500
- 10,000 new apartments will make the equilibrium price = $1,000
- 15,000 new apartments will make the equilibrium price = $500
Option C
If expectations of the future inflation rate are formed solely on the basis of a weighted average of past inflation rates, then economics would say that expectation formation is: adaptive.
<u>Explanation:</u>
Adaptive expectations hypothesis implies that investors will modify their expectations of future behavior based on current prior behavior. In finance, this impact can effect people to produce investment decisions based on the way of contemporary historical data, such as stock price activity or inflation rates, and modify the data to prophesy future exercise or rates.
If the market has been trending downward, people will possible expect it to proceed to trend that way because that is what it has been acting in the recent past.
The answer is:
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[A]: <span>friendly, but business-like .
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