Answer:
a.
Cash 16500 Dr
Common Stock 16500 Cr
b.
Cash 13500 Dr
Notes Payable 13500 Cr
c.
Equipment account 1450 Dr
Accounts Payable 1450 Cr
d.
Land 25000 Dr
Cash 2300 Cr
Notes Payable 22700 Cr
e.
Equipment account 9500 Dr
Cash 2300 Cr
Accounts Payable 7200 Cr
Explanation:
a.
The issuance of common stock against cash will increase the cash and the capital. So cash will be debited and capital (common stock) will be credited.
b.
The issuance of notes payable against cash increases liability and asset. The asset increase in cash will be debited and liability increase in notes payable will be credited.
c.
The purchase of equipment on account will increase liability and asset. The asset increase in form of equipment will be debited and the liability increase in form of accounts payable will be credited.
d.
The purchase of land will increase land and result in a debit to the land account. It is purchased for cash and a liability of notes payable. So both cash and the notes payable account will be credited as cash decreases (asset decrease in credited) and liability increases (liability increase is credited).
e.
The purchase of equipment will increase equipment account and result in a debit to the equipment account. It is purchased for cash and a liability of accounts payable. So both cash and the accounts payable account will be credited as cash decreases (asset decrease in credited) and liability increases (liability increase is credited).
Answer:
Exchanged-traded funds
Explanation:
Exchanged-traded funds are forms of investment that are usually traded on stock exchange the way other securities are traded, but they have an underlying asset.
Unlike mutual funds ETF are traded on the stock exchange at all periods of the day.
Assets held by ETF includes, shares, currencies, bonds, and commodities like gold and oil.
Value of trade is kept close to the net value of the underlying asset.
Answer:
Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.
Explanation:
1. Better technology for the business.
Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.
2. Better capital management.
Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.
3. Tax benefits
Leasing is tax deductible. Reducing the fiscal pressure over the small business.
Answer:
The price of foreign oil was raised by OPEC.
Explanation:
By the end of 1960s the foundation of OPEC (Oil producers and exporter countries) defined the collusion of some oil producer countries to increase their power over the oil market. With the political crisis in the Arab world, the OPEC to advantage of shortage in oil world supply and increase the price of oil. Being the US a net importer of oil, the increment in oil prices turned into a trade deficit in a short time.
