Answer:
$3,355
Explanation:
Accounts receivables = $ 352,000
Debit Allowance for uncollectible accounts = 630
Net Sales = $797,000
The company estimates that 0.5% of net credit sales are uncollectible
Estimates of uncollectible receivables
= 0.5% × $797,000
=$3985
This is the total amount to be recognized at the end of the year as Bad Debts Expense. Since a debit of $630 has been recognized already, additional debit required
= 3985 - 630
= $3,355
The amount to be debited to Bad Debts Expense when the year-end adjusting entry is prepared is $3,355.
Answer:
The correct answer is $177,955.
Explanation:
According to the scenario, the computation of the given data are as follows:
Capital in excess of par account = $74,500
Common stock = $85,000
Retained earning = $141,500
So, we can calculate the balance in the capital in excess of par account be after the dividend by using following formula:
Capital after Dividend = Balance sheet amount of Capital + ( Issued additional share × Capital in excess of par per share )
Where,
Issued additional share = 11% × $85,500 = 9,405
And Capital in excess of par per share = $12 - $1 = $11
By putting the value, we get
Capital after dividend = $74,500 + ( 9,405 × $11)
= $74,500 + $103,455
= $177,955
Answer:
B. Investors´ perceptions change, making a fixed exchange rate untenable.
Explanation:
A speculative attack happens when a lot of untrustworthy assets are sold by many investors and with that sale, they buy valuable assets.
In currency, it occurs when the national currency is sold massively and suddenly by national and foreign investors. These types of speculative attacks are seen especially on currencies that use a fixed exchange rate. They have the value of it tightened to a foreign currency.
I hope this answer helps you.
Question:
If the marginal product of capital net depreciation equals 8 percent, the rate of growth of population equals 2 percent, and the rate of labor-augmenting technical progress equals 2 percent, to reach the Golden Rule level of the capital stock, the ____ rate in this economy must be _____.
A) saving; increased
B) population growth; decreased
C) depreciation; decreased
D) total output growth; decreased
Answer
The correct answer is A) <u>Saving</u> rate of the economy must be i<u>ncreased</u> in order for the economy to reach the Golden Rule Level of the Capital Stock.
Explanation
Golden Rule Level of the Capital Stock is the level at which
MPK = δ,
Where MPK is Marginal Product; and δ the depreciation rate;
so that the marginal product of capital equals the depreciation rate.
In the Solow growth model, a <em>high saving rate results in a large steady-state capital stock and a high level of steady-state output.</em> A low saving rate results to a small steady state capital stock and a low level of steady-state output. Higher saving leads to faster economic growth only in the short run. An increase in the saving rate raises growth until the economy reaches the new steady state. That is, if the economy retains a high saving rate, it will also maintain a large capital stock and a high level of output, but it will not maintain a high rate of growth forever .
