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3 years ago

What does it mean to say that "banks create money"?

1 answer:

8 0

The process wereby banks make loans equal to amount of their excess recerves and create new checkbook money is known as multiple deposit creation each time a bank recieves a deposit it sets aside some of it to meet reserve requirements and may lend an amount equal to the remaing excess reserves

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Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $81,400.

ivann1987 [24]

Answer:

$7,326

Explanation:

Double Decline Balance = 2 x SLDP x SLDBV

where,

SLDP = Straight Line Depreciation Percentage

= 100 ÷ useful life

= 100 ÷ 20

= 5 %

and

SLDBV = Straight Line Percentage Book Value

Year 1

Double Decline Balance = 2 x 5% x $81,400

= $8,140

Year 2

Double Decline Balance = 2 x 5% x ($81,400 - $8,140)

= $7,326

Therefore

The machine's second-year depreciation using the double-declining balance method is $7,326.

4 0

3 years ago

When evaluating where you want to attend college, it is good idea to narrow down your choices to?

Nataly [62]

The most important factor is considering the tuition. A lot of students experience problems regarding expensive student loans and gradually being in debt after school. To prevent this, keep you pool within your financial capability. Then, the basic information comes next, like the courses offered and the quality of education and training.

8 0

3 years ago

Alcott's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not eff

harina [27]

Answer:

= 8.89%

Explanation:

Th rate of return on a preferred stock is the dividend divided by the price of the stock multiplied by 100

Return = Dividend/price × 100

Quarterly dividend = $1

Annual dividend

= 1 × 4 ( Note there are four quarters in year)

= $4

Annual rate of return

= (4/45)× 100

= 8.89%

5 0

3 years ago

Justin deposits $4,000 into an IRA account that earns an annual interest rate of 6.5%. If he makes no additional deposits, how m

Liula [17]

Answer:

The Future value at year time is $4,260

Explanation:

The future value at the end of the year one can be found by using the compounding formula which is as under:

Future Value = Present Value * (1 +r)^n

Future Value = $4,000 * (1.065)^ 1 = $4,260

8 0

3 years ago

Riverbed Company sells goods that cost $320,000 to Ricard Company for $407,000 on January 2, 2020. The sales price includes an i

Alecsey [184]

Answer:

a) Journal entries to record the sale on January 2, 2020:

Debit Accounts Receivable with $407,000

Credit Sales Account with $368,500

Credit Deferred Revenue (Installation Fee) with $38,500

Being sales of goods and installation services.

b) Income Statement for 1st Quarter of 2020

Sales - $368,500

Installation Fee - $19,250

Total Income - $387,750

less cost of sales - $320,000

Net Income - $67,750

c) The revenue Shaw should recognize in relation to the sale to Ricard is $387,750 (goods and accrued installation fee). The installation fee to be recognized is for 3 months only.

Explanation:

The installation fee is for 6 months. Therefore, 3 months' worth of fee will be recognized in the income statement ending on March 31, 2020.

7 0

3 years ago