Answer:
February 2
Debit Inventory $60,000
Credit Cash/Accounts payable $60,000
February 5
When a return of the item purchased is done,
Debit Cash/Account payable $4,000
Credit Inventory $4,000
Explanation:
In the perpetual inventory system, any movement (sale or return or purchase) must be adjusted in the books once the item moves.
When an item is purchased, such purchase may be done by cash or on account, the entries required are
Debit Inventory
Credit Cash/Accounts payable
When a return of the item purchased is done,
Debit Cash/Account payable
Credit Inventory
Amount returned = $40 * 100
= $4,000
Year Annual cost PV factor at 12% Present value
1 $1,800,000 0.893 $1.607,400
2 $1,800,000 0.797 $1,434,600
3 $1,800,000 0.712 $1,281,600
4 $1,800,000 0.636 $1,144,800
5 $1,770,000 0.567 $1,003,590
6 $1,740,000 0.507 $882,180
7 $1,710,000 0.452 $772,920
8 $1,680,000 0.404 $678,720
9 $1,650,000 0.361 $595,650
10 $1,620,000 0.322 $521,640
Present worth $9,923,100
<span>it requires a company or individual divide resources on multiple targets rather than one. Therefore, one must use these resources more efficiently because he or she is using the same amount, usually concentrated on one target, on multiple. A company should only use this strategy if it is extremely confident in its ability to market simultaneously to multiple groups.</span>
Answer:
money supply will increase by 2,400,000
Explanation:
the expansion f the money supply will be:
the money multiplier will be:
1/reserve ratio = 1/0.125 = 8
300,000 x 8 = 2,400,000
The reasoning for the multiplier effect is the following:
once the money is received, it will be used, and the person who receive the cash will deposit their proceeds.
This amount, can generate a new loan for, the remainder after subtracting the required reserve.
300,000 - 12.5% = 262,500
And this, once used will also end in a deposit. This opens the posibility for another loan, after reducing the reserve
262,500 - 12.5% = 229,687.5
This can be reapeat again and again and the limit for this is the formula state above:
multiplier effect = 1/reserve ratio
