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vovangra [49]
3 years ago
14

Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $

2,700, transfer payments of $750, capital depreciation of $800, and investment of $3,000. GDP equals
A. $24,450
B. $11,550
C. $15,300
D. $20,700
Business
1 answer:
TiliK225 [7]3 years ago
8 0

Answer:

The correct option is C ,$15,300

Explanation:

GDP is a short form of Gross Domestic Product which is an indicator of total goods produced in an economy in a period of one year.

Using the expenditure method,GDP van be computed using the below formula:

GDP=C+I+G+(X-M)

C is the consumption in the economy which is $9000

I is the level of investment at $3,000

G is the government expenditure of $3,500

X is the export of $2,500

M is the import of $2,700

GDP=$9000+$3000+$3500+($2500-$2700)

GDP=$15,300

Hence the GDP is $15,300

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If gross pay increases by $500, total employee benefits increase by $200 and total job expenses decrease by $300, then total emp
denis23 [38]

Answer:

option (d) increases by $1,000

Explanation:

Data provided in the question:

Increase in gross pay = $500

Increase in total employee benefits = $200

Decrease in total job expenses = $300

Now,

The change total employment compensation

= Increase in gross pay + Increase in total employee benefits + Decrease in total job expenses

= $500 + $200 + $300

= $1,000             (Here, the positive value means an increase )

Hence,

The answer is option (d) increases by $1,000

5 0
3 years ago
In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20
alekssr [168]

Answer:

Entry to record adjustment:

COGS Dr $9.4m

         Inventory Cr $9.4m

Explanation:

The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.

The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:

Entry:

COGS Dr $9.4m

         Inventory Cr $9.4m

8 0
3 years ago
Kay Magill Company had the following adjusted trial balance.
nadya68 [22]

Explanation:

A. The preparation of the closing entries at June 30, 2015 is presented below:

1. Service Revenue A/c Dr $4,300

                To Income Summary $4,300

(Being revenue account closed)

2. Income summary A/c Dr $3,500

                 To Supplies Expense $1,900

                 To Salaries and Wages Expense $1,344

                 To Miscellaneous Expense $256

(Being expenses accounts are closed)

3. Income summary A/c Dr $800           ($4,300 - $3,500)

                      To Retained earning $800

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $628

                         To Dividend A/c $628

(Being dividend account is closed)

2. Now the post-closing trial balance is presented below:

Particulars                                    Debit                           Credit

Cash                                             $3,712

Accounts Receivable                  $3,904

Supplies                                       $480

Accounts Payable                                                             $1,556

Unearned Service Revenue                                             $160

Common Stock                                                                  $4,000

Retained Earnings                                                              $1,932    

Salaries and Wages Payable                                             $448

Total                                              $8,096                           $8,096

The retained earnings is

= $1,760 + $800 - $628

= $1,932

5 0
3 years ago
Supply and demand coordinate to determine princes by working
Mashutka [201]

Answer:

The market mechanism

Explanation:

This is where demand meets supply and a price is agreed

3 0
3 years ago
Jan. 1. Announced a 4-for-1 common stock split, reducing the par value of the common stock to $1.00 per share. Mar. 30. Converte
Crank

Answer:

a.                            stockholder's Equity

DEBIT                          amount                                 CREDIT           amount

                                                             1 Jan                                    600000

                                                               bank                                   160000

                                                              bond                                    103000

                                                              bank                                     110000  balance c/d               <u>973000</u>                                                        

                                       bank                                                                                                              

stockholder's           160000

stockholder's           110000           balance c/d                                270000

                                        preferred stock                        

                                                     1 Jan                                            500000

                                                      equipment                                  40000

balance c/d               540000

                                          investment

bank                             210000           bank                                    11500

paid in excess             1000

                                              EQUIPMENT                                                                        

preferred stock              40000           balance c/d                            40000

                                       Retained earnings              

                                                       1 Jan                                              325000

 balance c/d             475000        net income                                    150000

                                      bond

DEBIT                        amount                                    CREDIT             amount

common stock          103000

                                          paid in excess

balance  c/d          1000                   investment                             1000

b. Journal entries  

split shares no entry needed just a memo note

mar 30 Debit bonds 103000 credit stockholder's equity 103000

june 1 Debit equipment 40000 credit preferred stock 40000

Sep 1 Investment 210000 credit bank 210000

Nov 21 bank 110000 credit stockholder's equity 110000

Debit bank 11500 credit investment 10500,  credit paid in excess 1000

Debit  net income ( income summary) 150000 credit Retained earnings 150000

Explanation:

the missing parts of the question;

The stockholders’ equity of Summit Corporation at January 1 follows:

7 Percent preferred stock, $100 par value, 20,000 shares authorized;

5,000 shares issued and outstanding $500,000

Common stock, $15 par value, 100,000 shares authorized;

40,000 shares issued and outstanding 600,000

Paid-in capital in excess of par value—Preferred stock 24,000

Paid-in capital in excess of par value—Common stock 360,000

Retained earnings 325,000

Total Stockholders’ Equity $1,809,000

The following transactions, among others, occurred during the year:

Jan. 12 Announced a 4-for-1 common stock split, reducing the par value of the common stock to $3.75 per share. The authorization was increased to 400,000 shares.

Mar. 31 Converted $40,000 face value of convertible bonds payable (the book value of the bonds was $43,000) to common stock. Each $1,000 bond converted to 125 shares of common stock.

June 1 Acquired equipment with a fair market value of $70,000 in exchange for 500 shares of preferred stock.

Sept. 1 Acquired 10,000 shares of common stock for cash at $10 per share.

Oct. 12 Sold 1,500 treasury shares at $12 per share.

Nov. 21 Issued 5,000 shares of common stock at $11 cash per share.

Dec. 28 Sold 1,200 treasury shares at $9 per share.

31 Closed net income of $95,000 to the Retained Earnings account.

3 0
3 years ago
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