Answer:
The interest on notes is calculated as follows
Interest payable = Face value of bonds * Interest rate * (Time of maturity / 12 months)
= $695,000 * 6% * 9/12
=$31,275
Cullumber company will pay the face value of the notes as the notes are payable at par, along with interest rate of 6% for the period of 9 months. This will result in outflow of cash, thereby crediting cash account. The liability on account of notes payable and interest payable will be settles, thereby debiting the payable account
General Entry
Date Account Title and Explanation Debit Credit
30 Sep. Notes payable $695,000
Interest payable $31,275
Cash $726,275
(To record the amount to be paid at maturity)
Answer:
b) Debit Sales Returns and Allowances $2,300 and credit Accounts Receivable $2,300 in the general journal.
Explanation:
When goods were sold on account, Accounts receivables is debited, and Sales is credited. When goods are returned, Sales Return & Allowances is debited, and Accounts receivables is credited.
Thus, the entry will include Debit in Sales Returns and Allowances $2,300 and Credit in Accounts Receivable $2,300
Answer:
The answer is: A) If taxes are lowered, government revenues actually increase.
Explanation:
For example, when consumers have to pay less money in taxes, it means they will have more money to spend. Private consumption is the most important component of the GDP. When money starts to flow, a virtuous circle of growth starts a chain of events that reinforces economic growth through a feedback loop. When the economic growth rate increases, government revenue will also increase. The virtuous circle of growth is the most important pillar of the Keynesian economic theory.
The same applies to businesses, when they pay less taxes, they can invest more in new businesses which in turn increase economic growth, which results in higher revenue for the government.
Of course this theory applies to certain small tax reductions, and under certain specific circumstances.
Answer:
Union workers earn more money for similar work.
Explanation:
A labour union is when a group of workers come together to form an association for the benefit of members of the union. Labour unions have a higher bargaining power when compared with non union workers. This increases their potential for higher wages and better working conditions
Examples of labour unions in the US include :
- American Federation of State, County, and Municipal Employees
- American Federation of teachers
- United Food and Commercial Workers
- United Auto Worker
Answer:
The correct answer is "None of these".
Explanation:
The formula presented in the problem has all of its components described in the statement. The speed is equal to the distance divided by time. In the statement, it explicitly states that V is the velocity, t is the time and d is the distance. In this way, it describes all the components of the present formula.
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