Answer:
In what ways was the economic prosperity of the 1920s genuine, and in what ways did this prosperity disguise serious economic problems?
Do you think most people perceived the underlying problems in the economy? Why or why not?
Explanation:
The factors which contributed to the counterfeit prosperity of the 1920s were the abundant availability of consumer goods; farmers bought plenty of land and farm equipment and produced a large amount of goods for market; the availability of credits and the stock market performance led the people to obtain higher standards of living and leisure time; President Herbert Hoover and other politicians declared that the economy was doing extremely well.
But people realized a dramatic change in the economy, when it went from this apparent prosperity to a severe depression between 1929 and 1932, with the stock market-black tuesday in Oct., 29, 1929, when the farmers-demand for food goes down after WWI, prices went down, farmers over produced, could not pay back loans and land was lost
; loans not paid back caused banks failed, people began spending less on consumer goods and personal income and debt-income gap between rich and poor increased.
Answer:
b. Entry No. 3 and No. 4
Explanation:
Based on the information given in order to facilitate the subsequent journal entries, the appropriate adjusting entry or entries that may be reversed is (are) 3. Interest payable of the amount of $6500 and 4. Rent receivable of the amount of $11000 which represent:
Entry No. 3 and No. 4
3. Interest payable, $6500
4. Rent receivable, $11000.
INTEREST PAYABLE can be seen or defined as the interest amount a company or an organization owed their lender or borrower which they are yet to pay the lender or borrower.
RENT RECEIVABLE can be seen or defined as the amount owed by a tenant which a landlord is supposed to received but has not yet been paid by the tenant.
Therefore In the normal situation, to facilitate subsequent entries, the adjusting entry or entries that may be reversed is (are) :Entry No. 3 and No. 4
