Answer:
Bad debt expense $11,320 ($283,000 × 4%)
To Allowance for doubtful debts $11,320
(being the bad debt expense is recorded)
Explanation:
The journal entry is shown below:
Bad debt expense $11,320 ($283,000 × 4%)
To Allowance for doubtful debts $11,320
(being the bad debt expense is recorded)
For recording this given transaction, we debited the bad debt expense as it increases the expenses account and at the same time it decreases the account receivable so the allowance would be credited so that the proper posting could be done
Answer:
Dodd-Frank Act of 2010
Explanation:
The Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted as stated by its name to change how Wall Street worked (well not only Wall Street, but the financial system) and to specially protect the small investor. It was promoted by Senator Chris Dodd and Representative Barney Frank as a result of the great recession suffered between 2008 and 2010, which was primarily caused by an inefficient and sometimes even corrupt financial system. It is a very long and complex law, but it mainly places strict regulations on lenders, banks and other financial institutions.
Answer:
Bond price=$888.35
Explanation:
<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate</em>
<em>Value of Bond = PV of interest + PV of RV</em>
The value of bond for Local School District can be worked out as follows:
Step 1
PV of interest payments
PV = A × (1+r)^(-n)/r
A-annul interest payment:
= 7.5% × 1,000× = 75
r-Annual yield = 8.6%
n-Maturity period = 25
PV of interest payment:
=75× (1- (1+0.086)^(-25)/0.086)
= 761.22
Step 2
<em>PV of Redemption Value</em>
= 1000 × (1.017)^(-25)
= $127.131
Step 3
<em>Price of bond</em>
=761.222 + 127.13
=$888.35
Answer:
d) the money supply should grow at a constant rate.
Explanation:
The Federal Reserve System (popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, the Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
Monetary growth rule is a theory that was proposed by Friedman and it states that the Federal Reserve System (Fed) should be required to set or target the money supply growth rate to be equal to the growth rate of Real gross domestic product (GDP) each year and leaving the price level of goods and services unchanged.
Basically, this growth rate of gross domestic product (GDP) is usually set between 1% and 4%. Also, the monetary growth rule is also referred to as the K-Percent rule.
Hence, a monetary growth rule means that the money supply should grow at a constant rate.
Answer:
Debit Accounts Receivable, $225; credit Fees Earned, $225
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