All categories

3 years ago

Accounting for trade in goods and services Suppose the following transactions occur during the current year:

Business

1 answer:

Reil [10]3 years ago

4 0

Answer:

Accounting for trade in goods and services

Indication of the combined effects of transactions on the U.S. national accounts for the current year:

1. Dmitri orders 40 bottles of wine from a French distributor at a price of $30.00 per bottle.

Amount (Dollars) $1,200

Consumption 0

Investment 0

Government Purchases 0

Imports Exports 0

Net Exports 0

Gross Domestic Product (GDP) 0

2. A U.S. company sells 200 spark plugs to a Korean company at $5.00 per spark plug.

Amount (Dollars) $1,000

Consumption 0

Investment 0

Government Purchases 0

Imports Exports $1,200 Exports

Net Exports $1,200

Gross Domestic Product (GDP) $1,200

3. Jake, a U.S. citizen, pays $670 for a surfboard he orders from Greatwaves (a U.S. company).

Amount (Dollars) $670

Consumption $670

Investment 0

Government Purchases 0

Imports Exports 0

Net Exports 0

Gross Domestic Product (GDP) $670

Explanation:

The Gross Domestic Product (GDP) is the total market value of goods and services produced within an economy for a given period. It is calculated with this formula: GDP=C+I+G+(X−M) where, C = Consumption of goods and services, I = Investments, G = Government Spending, X = Exports and M = Imports. It is in turn influenced by transactions that take place on a daily basis. Some of the transactions do not really affect a country's GDP. For example, the order of bottles of wine by Dmitri (supposedly a Greek citizen) from a French distributor into (Greece).

You might be interested in

B Co. reported a deferred tax liability of $24 million for the year ended December 31, 2017, related to a temporary difference o

exis [7]

Answer and Explanation:

Journal Entry would be:

Tax expense (plug) 30

Deferred tax liability [( 30% - 40%) x $ 60] 6

Taxes payable (40% x $90) 36

3 0

3 years ago

The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2020. All materi

sammy [17]

Solution:

MANUFACTURING COMPANY

Welding Department

Production Cost Report

For the Month Ended February 28, 2020

Equivalent Units

Quantities Physical Materials Conversion

Units Costs

Units to be accounted for

Work in process, February 1 15,300

Started into production 50,600

Total units 65,900

Units accounted for

Transferred out 54,900 54,900 54,900

Work in process, February 28 11000 11000 2200

Total units 65,900 65,900 65,900

Costs Materials Conversion Costs Total

Unit costs

Total Costs $233945 $128000 $326000

Equivalent units 60000 51200

Unit costs $3.3 $2.5 $5.8

Costs to be accounted for

Work in process, February 1 $32,175

Started into production 293825

Total costs $326000

Cost Reconciliation Schedule

Costs accounted for Transferred out $284200

Work in process, February 28

Materials $36300

Conversion costs 5500 41800

Total costs $326000

3 0

3 years ago

Verslas is a firm operating in a monopolistically competitive market. It is currently maximizing profit with an output of 1,200

Marina86 [1]

Answer:

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants

When firms are earning positive economic profit, in the long run, firms enter into the industry. This drives economic profit to zero

If firms are earning negative economic profit, in the long run, firms leave the industry. This drives economic profit to zero

in the long run, only normal profit is earned

If Verslas is producing at a profit maximising point, it means that marginal revenue equal marginal revenue and the firm is earning a normal profit

3 0

3 years ago

Zibba Company enters materials at the beginning of the process. In January, there was no beginning work in process, but there we

ruslelena [56]

Answer:

units started less 200.

Explanation:

Unit at which the process is started on the beginning of January minus the closing inventory is the number of completed units in work in process when there is No beginning Work in process.

Using following formula we will calculate the Units completed in WIP.

Work in process Closing Inventory = Opening WIP + Addition during the period - Completion during the period

200 units = $0 + Addition during the period - Completion during the period

Completion during the period = Addition during the period - $200 units

In the absence of Beginning Inventory the the addition during the period is the number of unit at which the process is started.

7 0

3 years ago

Fill in the blanks: Stock prices fall if investors either expect _________ growth rates or require _________ returns.A. higher,

devlian [24]

Answer:

C. lower, higher

The reason for this is that when growth rates are lower investors will be willing to pay less for the stock is because low growth rate mean that the capital gains will be less as stock price is less likely to increase in the future and dividend growth is also less. Also the DDM model D*(1+G)/1-R shows that mathematically a lower growth rate would mean lower stock price

Also Higher required returns mean that the investor requires higher returns to buy the stock, because he may view the stock as risky and requires higher returns for the risk he is taking or he may have a higher opportunity cost (for eg interest rates may be high) with other investments. Mathematically the DDM model D*(1+G)/R-G shows us that a higher R would mean lower stock price.

Explanation:

7 0

3 years ago

Read 2 more answers