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3 years ago

A decrease in government spending

Business

1 answer:

stich3 [128]3 years ago

5 0

Answer:

a. decreases the interest rate and so investment spending increases.

Explanation:

An increase in government spending has a crowd-out effect on the economy as interest rate rises since government borrows more than many businesses in terms of size and volume. The opposite effect results when government spending decreases.

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Determine the adjusted basis of each of the following assets:

Andru [333]

Answer and Explanation:

The computation is shown below:

75% 25% 100%

Particulars Business Use Personal Use Total

Initial Basis $22,500 $7,500 $30,000

Less: Depreciation -$4,209 0 -$4,209

Adjusted Basis $18,291 $7,500 $25,791

Particulars Building Land Land Improvements

Original Cost $250,000 $80,000

Remodeling cost $8,000

Parking lot and sidewalks $12,000

Depreciation -$70,620 -$1,000

Adjusted basis $187,380 $80,000 $110,000

We simply classify the cost to each type of asset which is shown above

8 0

3 years ago

At December 31, 2012 and 2011, Miley Corp. had 180,000 shares of common stock and 12,000 shares of 6%, $100 par value cumulative

Nuetrik [128]

Answer:

$2.5 per share

Explanation:

Earning Per share is the amount of earning for the period that allocated to each share. Normally it is calculated using common shares. The earning used in this calculation is purely the earning that is associated with the shareholders of the company. We can have this earning after deducting all the expenses and preferred dividend as well.

Formula:

Earnings per share = Net Income / Numbers of common Shares

Earnings per share = $450,000 / 180,000

Earnings per share = $2.5 per share

7 0

3 years ago

On June 1, 2018, Perfect Performance Cell Phones sold $ 17,000 of merchandise to Ashton Trucking Company on account. Ashton fe

inn [45]

Answer:

See answers and explanation below.

Explanation:

1. Journalize the transactions for High Performance Cell Phones using the direct write-off method. Ignore Cost of Goods Sold.

Date Details Dr ($) Cr ($)

1 Jun. 18 Account receivable 17,000

Sales revenue 17,000

To record sales to Ashton Trucking Company on account.

15 Jul. 18 Cash 6,000

Account receivable 6,000

To record cash received from Ashton Trucking Company.

5 Sep. 18 Bad debt 11,000

Account receivable 11,000

To record accounts receivable from Ashton written off.

5 Mar. 19 Account receivable 11,000

Bad debt 11,000

To record transfer of bad bad back toaccounts receivable.

5 Mar. 19 Cash 11,000

Account receivable 11,000

To record cash received from Ashton Trucking Company.

2. What are some limitations that High Performance will encounter when using the direct write-off method?

a. It is not in line with the matching principle. This is because bad debt expenses will not be reported in the same period they are incurred and might not be realized as bad expenses until the following period.

b. It can cause inaccurate balance sheet as it does give the actual amount of accounts receivable of a company.

c. It method of recording violates GAAP and financial statements does to present the actual financial performance of the business.

d. It overstates accounts receivable as the full amount of amount owed to the company from credit sales will be reported as accounts receivable.

6 0

3 years ago

Payton, Inc.'s charter authorized 100,000 shares of stock with a par value of $1 per share. Payton issues 100 shares at a market

hoa [83]

Answer:

Common stock and $100

Explanation:

The journal entry is shown below:

Cash Dr $500 (100 shares × $5)

To Common stock $100 (100 shares × $1)

To Additional paid in capital in excess of par value - common stock (100 shares × $4)

(Being the issuance of the common stock is recorded)

For recording this we debited the cash as it increased the assets and credited the common stock and additional paid in capital as it increased the stockholder equity

6 0

3 years ago

Universal Containers sells through many different reseller networks. Each reseller's deals are tracked on separate opportunities

tatiyna

Answer: change the forecast category to omitted on the duplicate opportunities

Explanation:

The sales process should be modified to ensure opportunities are not double-counted in the pipeline by changing the forecast category to omitted on the duplicate opportunities.

When this is done, the multiple opportunities for the same end customer will be curtailed and hence, there'll be accuracy with regards to the pipeline report.

5 0

3 years ago