Answer is The Federal Reserve.
Answer: above its original value
Explanation:
An increasing-cost industry simply means the industries whereby there's a rise in the average costs when the output increases.
Demand increases in an increasing-cost industry which is in long-run competitive equilibrium. After full adjustment, price will be above its original value.
Answer:
high
Explanation:
the most popular time of year at a resort, hotel, or tourist attraction, when prices are highest
Answer:
S/N ACCOUNT DEBIT CREDIT
1 Equipment $22,000
Cash $22,000
Being payment for new component expected to increase the
equipment’s productivity by 10% a year
2. Equipment Repairs expenses $6,250
Cash $6,250
Being payment for equipment repair
3. Equipment $14,870
Cash $14,870
Being payment for equipment repair to prolong the useful life
the asset
Explanation:
The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.
Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.
The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is expected to increase the equipment’s productivity by 10% a year.
The $6,250 paid for normal repair is a revenue items which is to be expensed against the earning of that period.
The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.
Answer:
A) Prepare the entry to record the receipt of funds from the loan
Dr Cr
$ $
Cash 13,200
Notes Payable 13,200
Being the receipt of funds from the ban
B) Prepare the entry to accrue the interest on June 30
Dr Cr
$ $
Interest Expense (13200 * 0.05 * 1/12) 55
Interest Payable 55
Being accrued interest as at month end June 30
C) Assuming the adjusting entries are made at the end of each month, determine the balance in the interest payable account as at December 31, 2020
= Monthly accrued interest * number of months = 55 * 7 = $385
D) Prepare the entries required on January 1, 2023 when the loan is paid back:
Dr Cr
$ $
Notes Payable 13,200
Interest Payable 385
Cash 13,585
Being refund of loan
Explanation: