Answer:
a.$900
Explanation:
The required reserve is the amount of reserve required by the Central bank for banks to keep as reserves.
If the reserve ratio is 10% and $1000 is deposited, the required reserve is $100.
$1000 - $100 = $900 would be available to banks to give out as loans. Thus , money supply increases by $900.
I hope my answer helps you.
Answer and Explanation:
The journal entries and the amount reported on the balance sheet is as follows:
1&2 The journal entries are as follows:
Investment in Bonds $240 million
Premium on Bond Investment $40 million
To Cash $280 million
(Being investments in Bonds is recorded)
Cash (3% × $240 million) $7.2 million
To Premium on Bonds A/c (Bal Figure) $1.6 million
To Interest Revenue A/c (2% × $280 million) $5.6 million
(Being Interest is recorded)
3. Now the amount reported on the balance sheet is
Investment in Bonds $240 million
Original Premium $40 million
Less: Amortization -$1.6 million
Amount to be reported in Balance sheet $278.4 million
Answer:
Rent expense (Dr,) $9,800
Prepaid Rent $9,800
Explanation:
The accrual concept of accounting requires us to record the expenses in a period in which they are incurred rather than when cash is paid. When the company paid advance rent of six months at the end of October, it will record a current asset (Unexpired resource) on the face of balance sheet. At the end each accounting period, it is required to expense out the resources (benefits) that are expired (utilized). This can be done through straight-line method. So, on December 31, 2019, the rent expense of two months that is of November and December should be charged to profit and loss statement in-order to record the expense of related period.
<u>Workings</u>
Rent expense per month = 29,400 / 6 = $4,900.
⇒ Rent expense of two months = 4,900 * 2 = $9,800.
This amount should be written off and the required adjusting entry is:
Rent expense (Dr,) $9,800
Prepaid Rent $9,800
Answer:
Producers and consumers :)
Explanation:
Market economies are run by buyers and sellers, there is no government involved.
Answer:
The correct answer is 5%.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the growth rate by using following formula:
Growth rate = (Dividend of 3rd year ÷ Dividend of 1st year)^1/2 -1
By putting the value in the formula, we get
Growth rate = ($4.41 ÷ $4 )^1/2 - 1
= ( $0.41)^1/2 -1
= 0.05 or 5%
