Answer: See explanation
Explanation:
Borrowing from the Federal reserve is typically used by banks so that they can go above the minimum reserve. This is done typically using the discount window.
The rate that is charged when the banks borrow from the Federal reserve is typically set by the Federal reserve. The reason why banks commonly borrow in the federal funds market rather than through the Federal Reserve is due to the fact that a lower rate is charged when one borrows from the federal funds market rather than borrowing from the Federal reserve.
Answer and Explanation:
1. Journal Entries
July 15 Accounts Receivable $66,000
Sale Revenue $66,000
July 23 Cash $64,680
Sales discount 1320
Accounts Receivable 66,000
2. Journal Entries
July 15 Accounts Receivable $66,000
Sale Revenue $66,000
August 15 Cash $66,000
Accounts Receivable 66,000
<h3>Two advantages of budgeting;</h3>
i. Manage your money effectively.
ii. Monitor performance.
<h3 /><h3 /><h3>Two disadvantages of budgeting;</h3>
i. Time required.
ii. Gaming the system.
iii. Blame of outcomes.
Answer:
Please see the answers below:
Explanation:
(O+) a. Increase in accounts payable
(F-) b. Payment of dividends
(O-) c. Decrease in accrued liabilities
(F+) d. Issuance of common stock
(O-) e. Gain on sale of building
(O+) f. Loss on sale of land
(O+) g. Depreciation expense
(O-) h. Increase in inventory
(O+) i. Decrease in accounts receivable
(I-) j. Purchase of equipment
Answer:
Task 1:
The answer is $700.
Task 2:
The answer is $130.
Task 3:
The answer is $20.
Task 4:
The answer is $10,570.
Task 5:
The answer is $110.
Explanation:
<h2>Task 1:</h2><h3>How much does each investor make on his investment with the 7% rate of return?</h3><h3>Solution:</h3>
Adrian & Clemens makes [$10,000*0.07] on their investment = $700.
<h2>Task 2:</h2><h3>How much does Adrian pay in fees for his actively managed mutual fund?</h3><h3>Solution:</h3>
Adrian owes to his broker = (10000*.013) = $130
<h2>Task 3:</h2><h3>How much does Clemens pay in fees for the index fund?</h3><h3>Solution:</h3>
Clemens owes to his broker= ($10000*.002) = $20
<h2>Task 4:</h2><h3>At the end of the year, what's the total value (AFTER FEES) of Adrian's mutual fund?</h3><h3>Solution:</h3>
Value of Adrian's stock = $10000+$570 (net of brokerage) = $10,570
<h2>Task 5:</h2><h3>What's the total value (AFTER FEES) of Clemens's index fund?</h3><h3>Solution:</h3>
Value of clemens' stock = $10000+$680 (net of brokerage) = $10,680
<h2>Task 6:</h2><h3>How much more value does Clemens' investment generate than Adrian's in one year's time?</h3><h3>Solution:</h3>
Clemens investment makes ($680-$570) than adrian's investment = $110
