Answer and Explanation:
The journal entries are shown below:
1. Insurance expense Dr $1,200
To Prepaid insurance $1,200
(Being the insurance expense is recorded)
2. Supplies expense Dr ($5,000 + $2,000 - $800) $6,200
To Supplies $6,200
(Being the supplies expense is recorded)
These two above entries should be recorded and the same is to be considered
Answer:
Macro environmental factors likely to affect student enrollments at colleges and universities over the next decade includes sociocultural, economic, political and legal factors.
Explanation:
Macro environmental factors are very much external to student enrollments at colleges and universities over the next decade; however, they form an integral factor.
Sociocultural factors, such as the societal perception, and cultural systems, forms a vital role on the level of student enrollments at colleges and universities over the next decade?.
Answer:
3. net income is understated by $175
Explanation:
There were two transactions omitted. The first transaction is unearned rent revenue of which $450 was earned. This earned rent revenue increases income by $450. While the second transaction was accrued interest payable of which $275 is owed. This interest payable increases liabilities by $275.
Therefore, from the above, income or revenue is understated by $450, while expenses is understated by $275.
Therefore, net income is understated by income less expenses, thus 450 - 275 = $175. This also implies that liabilities are overstated by $175.
Answer:
3.05%
Explanation:
According to Pure Expectation Theory, the future short term interest rates are actually the forward rates.
Mathematically,
(1 + r2,0)^2 = (1 + r1,0)^1 * (1 + r1,1)^1
Here,
r2,0 is the rate of interest for 2 year treasury security from today
r1,0 is the rate of the interest for 1 year treasury security from today
r1,1 is the rate of the interest for 2 year treasury security from Year 1
By Putting Values, we have:
(1 + r2,0)^2 = (1 + 0.04)^1 * (1 + 0.021)^1
(1 + r2,0)^2 = 1.06184
By taking square-root on both sides, we have:
(1 + r2,0) = 1.0305
r2,0 = 3.05%