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2 years ago

How did speculative investing weaken the stability of the stock market

1 answer:

7 0

The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks.

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Presented below are selected account balances for Homer Winslow Co. as of December 31, 2014.

Stells [14]

Answer:

1. Dr Sales Revenue $411,940

Cr Income Summary $411,940

2. Dr Income summary $341,540

Cr Cost of Goods Sold $225,870

Cr Sales Returns and Allowances $13,650

Cr Sales Discounts $15,290

Cr Selling Expenses $17,400

Cr Administrative Expenses $39,150

Cr Income Tax Expense $30,180

3. Dr Income summary $70,400

Cr Retained earning $70,400

4. Dr Retained earnings $19,080

Cr Dividend $19,080

Explanation:

Preparation of closing entries for Homer Winslow Co. on December 31, 2014

1. Dr Sales Revenue $411,940

Cr Income Summary $411,940

(Being To close expense accounts)

2. Dr Income summary $341,540

($225,870+$13,650+$15,290+$17,400+$39,150+$30,180)

Cr Cost of Goods Sold $225,870

Cr Sales Returns and Allowances $13,650

Cr Sales Discounts $15,290

Cr Selling Expenses $17,400

Cr Administrative Expenses $39,150

Cr Income Tax Expense $30,180

(Being To close expense accounts)

3. Dr Income summary $70,400

( $411,940 -$341,540 )

Cr Retained earning $70,400

(Being To close net income)

4. Dr Retained earnings $19,080

Cr Dividend $19,080

(Being To close dividends to retained earnings)

6 0

3 years ago

Any home mortgage is classified to be of fixed-rate (F) or variable rate (V). Consider an experiment of randomly selecting a sam

Lisa [10]

Answer:

A) we would have 16 outcomes in the sample space.

B) when exactly 3 are fixed rate, then it would be 3 out of the 16 outcomes

C) when we have Event (all being the same), then we would have it to be 2 out of the 16 overall outcomes

D) for Event (almost 1 being variable rate), then the answer would be 3 out of the 16 overall

E) for the union of Event( C) and Event (D), then the answer would be 5 out of the 16 overall outcomes

F)1. for the union of Event (B) and Event (C) , we would have it to be 5 out of the 16 overall outcomes

F) 2. For the intersection of Event (B) and Event (C), then the result would be 3/16*2/16 =6/256

Explanation:

Note : by using the tree diagram,and taking f=fixed rate v=variable rate

A) Sample space ={ffff, fffv, ffvf, ffvv, fvff, fvfv, fvvf, fvvv, vfff, vffv, vfvf, vfvv, vvff, vvfv, vvvf, vvvv} =16 possible outcomes in all

B) Event (Exactly 3 are fixed) = {ffvf, fvff, vfff} =3/16

C) Event (The Same) ={ffff, vvvv} =2/16

D) Event(having at most 1 variable rate) ={ffvf, fvff, vfff) = 3/16

E) for the union of Event C and D above, we must recall that union is considered as addition in probability theory. So we just do, 2/16 + 3/16 =5/16

F)1. For the Union of Event B and C above, we would just do our usual addition, ie, 3/16 + 2/16 =5/16

F) 2. For the intersection of the same as question F) 1 above, it would be required that we multiple, since intersection is handled as multiplication in probability theory.

Hence, we'd have, 3/16 * 2/16 =6/256

4 0

3 years ago

"Required: 1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and interest on

Serga [27]

Answer:

Explanation:

The investments, being recorded under the fair value method, the accounting for the held-to-maturity securities would be similar to the accounting for trading securities. In the balance sheet of Company T, the securities would be shown at the fair value, and the unrealized gains or losses would also be shown in the income statement in the corresponding period.

6 0

3 years ago

The par value of common stock represents: the amount received when the stock was issued. the liquidation value of a share. the m

Evgen [1.6K]

The par value of common stock represents the arbitrary dollar amount assigned to a share of stock. This value is the stated value per share as outlined in the issuing company's charter. This calue is also called the face value because it's the value printed on the face of a bond or stock certificate.

7 0

2 years ago

A global business is organized into four groups: Manufacturing, Research and Development, Finance, and Sales. This company uses

egoroff_w [7]

Answer:

Functional structure.

Explanation:

A global business is n organized set of activities that are performed by the specific set of the department and it comprises of the different groups such as the manufacturing, research and the development and the finance and sales. All these forms a set of the functional activities that are performed b the various departments.

5 0

3 years ago