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exis [7]
3 years ago
10

The Tidewater State Bank has $1000 in total assets (all of which are earning assets), $700 of which will be replaced with in the

next 90 days. This bank also has $800 in total liabilities, $400 of which will be replaced within the next 90 days. Currently, the bank is earning 8% on its assets and is paying 5% on its liabilities. If interest rates do not change in the next ninety days, what is this bank's net interest margin?
Business
1 answer:
Nesterboy [21]3 years ago
5 0

Answer:

4.6%

Explanation:

The computation is shown below:

= (Interest on assets - Interest on liabilities) ÷ (Total earning assets)

where,

Interest on assets = (8% + 2% × $700) + 8% × $300

= $70 + $24

= $94

Now the interest on liabilities equal to

= 5% × 400 + (5% + 2% × 400)

= $20 + $28

= $48

So, the net interest margin equal to

= ($94 - $48) ÷ ($1,000)

= 4.6%

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An aging of a company's accounts receivable indicates that $4,500 are estimated to be uncollectible. If Allowance for Doubtful A
lyudmila [28]

Answer:

a. debit to bad Debt expense for $3,300

Explanation:

The Journal entry is shown below:-

Bad debt expenses Dr, $3,300

       To Allowance for doubtful accounts $3,300

(Being bad debts expenses is recorded)

Therefore to record the bad debt for the period we simply debited the bad debt expenses as it increase the expenses and on the other hand we credited the allowance for doubtful accounts as decrease the assets.

So, the right answer is a. debit to bad Debt expense for $3,300 option.

Working Note:-

Bad debt expenses = Estimated uncollectible - Credit balance

= $4,500 - $1,200

= $3,300

4 0
3 years ago
In 2 hrs, Whitney can make 4 dozen cookies or 2 peach tarts. Her friend, Amy, can make 7 dozen cookies or 1 peach tart.
bogdanovich [222]

Answer: 4 dozen cookies and 1 peach tart

Explanation:

Whitney can make:

4 dozen cookies or 2 peach tarts in 2 hours

Amy can make:

7 dozen cookies or 1 peach tart in 2 hours

Here, we assume that there is only 2 hours of production

Cookies:

If Whitney specialize in cookies and there is no production of tart but only the production of cookies by Whitney, then,

Total production of cookies = 4 dozen cookies

Tart:

If Amy specialize in peach tart and there is no production of cookies but only the production of peach tart by Amy, then,

Total production of peach tart =  1 peach tart

3 0
3 years ago
Suppose that Riverview Community Bank loans out all of its excess reserves that resulted from the $178,000 Fed bond purchase to
sergey [27]

Answer:

The deposit of $178,000 by Mr. Rho appears under Liabilities of Waterfield Bank as shown in the attached photo.

Explanation:

Note: See the attached photo for the T-account Illustration for Waterfield Bank after this transaction has occurred.

The the proceeds of the home sale deposited by Mr. Rho into his checking account at Waterfield Bank is liability to Waterfield Bank. Therefore, the deposit of $178,000 by Mr. Rho appears under Liabilities of Waterfield Bank as shown in the attached photo.

4 0
3 years ago
Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expens
algol [13]

Answer:

30 months

Explanation:

expenses is 2000 and she wants to save for 6 months of them so 2000x6= 12000 10% of 4000 is 400 so we divide 400 into 12000 and get the awnser 30 months

4 0
2 years ago
Farmers are sometimes paid by the government to grow ________, which can reduce production of less commonly grown fruits and veg
storchak [24]

Answer:

Commodity crops.

Explanation:

Commodity crops are crops that are grown for the purpose of sale. They have a lot of uses as they cannot easily spoil and easy to store for a long period of time. They provide a source of food for man around the world and also serve some industrial purposes. Examples are cotton, wheat, corn, barley, meat, diary, etc.

They can reduce production of less commonly grown fruits and vegetables.

6 0
3 years ago
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