Answer:
a. adds $10,000 in bank reserves.
Explanation:
Given that
Reserve requirement is 20%
Now if you want to pay back the loan of $10,000 so here the act of paying back the loan is that the amount of loan i.e. $10,00 would get added to the bank reserves
Therefore as per the given situation, the option a is correct
And, the same is to be considered
Thus, all the other options are incorrect
Answer:
Computation of cash received from the sale of the equipment:
D. $58,000.
Explanation:
Computation:
Sale of Equipment Account
Equipment account $240,000
less acc. depreciation 172,000
Net book value $68,000
less loss on sale 10,000
Cash received $58,000
Equipment Account
Year 1 balance $750,000
Year 2 balance 510,000
Sale of equipment $240,000
Accumulated Depreciation:
Year 1 balance $500,000
Year 2 balance 328,000
Sale of equipment $172,000
b) The sale of the equipment caused a loss of $10,000. The net book value of the equipment is $68,000. This implies that it was sold for $58,000 ($68,000 - $10,000). So, the cash received from the sale is $58,000.
no they should not 100% correct
Answer:
Example of not a natural experiment an economist might use to evaluate a theory is:
C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.
Explanation:
Natural experiment : A natural experiment is referred to an observational and also an empirical study in which we get to study about the experimental and controllable varieties of variables. which can not het manipulated anywhere by the researchers.
Instead these experiments are allowed to affect the environment and the nature or the different factors which are not under control of our researchers. In contrast to the experimental values and all the natural experiments are even not controlled by the researchers but instead they also admire and obseve those experiments for their own studies.
So, the right option is:
C. Here the Students in a microeconomics principles course are advised to play a game with their classmates to determine and evaluate what all decisions they make under certain adjusted circumstances.
Answer and Explanation:
The journal entries are shown below:
a. Note receivable Dr $3,800,000
To Cash $3,800,000
(Being the acceptance of the note is recorded)
For recording this we debited the note receivable as it increased the assets and credited the cash as it decreased the liabilities
b. Interest receivable Dr $38,000
To Interest revenue $38,000
(Being the interest revenue is recorded)
For recording this we debited the interest receivable as it increased the assets and credited the interest revenue as it increased the revenue
The computation is shown below:
= $3,800,000 × 6% × 2 months ÷ 12 months
= $38,000
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