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4 years ago

A country’s real gdp rose from 500 to 550 while its nominal gdp rose from 600 to 770. what was this country’s inflation rate?

1 answer:

5 0

<span>The inflation rate is 16.67%. To find this, we first need to compute the GDP deflator for each year and then we need to calculate the percent change in the GDP deflator. The GDP deflator is given by GDPdef=(nominal GDP/Real GDP)*100. For the first year, the GDP deflator is 120. For the second year it is 140. Percent change is given by [(new value - old value)/old value]*100. Plugging in 140 for the new value and and 120 for the old value, we see get that the percent change is 16.6667. Thus the inflation rate is approximately 16.67%.</span>

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On May 1, 2017, Pronghorn Company issued 2,500 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shor

dybincka [34]

Answer:

a. Prepare the entry to record the issuance of the bonds and warrants

May 1, 2017, bonds issuance

Dr Cash 2,550,000

Dr Discount on bonds payable 25,000

Cr Bonds payable 2,500,000

Cr Additional paid in capital - stock warrants 75,000

b. Assume the same facts as part (a), except that the warrants had a fair value of $30. Prepare the entry to record the issuance of the bonds and warrants.

May 1, 2017, bonds issuance

Dr Cash 2,550,000

Cr Bonds payable 2,500,000

Cr Premium on bonds payable 20,000

Cr Additional paid in capital - stock warrants 30,000

Detachable warrants must be recorded separately than the bonds. They must be recorded as APIC stock warrants.

4 0

3 years ago

The public debt for the economy is

Paraphin [41]

The public debt is the amount of money that a government owes to outside debtors. Public debt allows governments to raise funds to grow their economy or pay for services. Politicians prefer to raise public debt rather than raise taxes. When public debt reaches 77% of GDP or higher, the debt begins to slow growth.

4 0

3 years ago

midshipmen Company borrows $17,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest

irina [24]

Answer:

Debit Credit

July 2021

Cash 17,500

Loan payable 17,500

June 30, 2022

Loan Payable 17,500

Interest payable 2,100

Cash 19,600

Adjusting Entry's

Debit Credit

Interest expense 1050

Interest Payable 1050

Explanation:

Interest for the year = 0.12*17500=2100

Interest expense 2021= 6/12*2100= 1050

6 0

3 years ago

Read 2 more answers

Oriole Company has the following inventory data:

Yuliya22 [10]

Answer:

$3,942

Explanation:

Step 1 : Determine number of units sold

Units Sold = Total units available for sale - Units remaining in inventory

= (45 + 157 + 22) - 56

= 168 units

Step 2 : Determine Cost of goods sold

<em>FIFO assumes that the units to arrive first will be sold first.</em>

Cost of goods sold = (45 units x $22) + (123 units x $24)

= $3,942

The amount allocated to cost of goods sold for July is: $3,942

7 0

3 years ago

Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options fo

Solnce55 [7]

Answer:

$8,300

Explanation:

Calculation for what Elroy's incremental profit or loss would be if he chooses option 2 over option 1

Using this formula

Incremental Profit of option 2 over option 1= Profit from option 1 - Profit from option 2

Let plug in the formula

Incremental Profit of option 2 over option 1= ($3,600*3)-(3*$1,100 - $800)

Incremental Profit of option 2 over option 1= $10,800 - $2,500

Incremental Profit of option 2 over option 1= $8,300

Therefore Elroy's incremental profit or loss would be if he chooses option 2 over option 1 would be $8,300

4 0

3 years ago