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Charra [1.4K]
2 years ago
7

Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A wi

ll eventually have a higher standard of living than Country B if
a. the level of saving per person is 5,000 in Country A and 7,500 in Country B.
b. the level of saving per person is 3.000 in Country A and 6.000 in Country B.
c. Both of the above are correct.
d. None of the above are correct
Business
1 answer:
Ne4ueva [31]2 years ago
8 0

Answer:

Option A is correct because the level of saving in percentage for company A is 2% (5000/250000). Whereas the level of saving in the company B is 1.5% which is lower than the savings of company A. This will increase the standard of life in the long run because greater the savings the greater is the amount invested in Financial assets which will decline the interest rate as the funds for investment are in excess it will decline the demand for loans. This investment will earn its investor more which will change his standard of life.

Remember standard of living is measured by:

GDP per capita= Total GDP/ Total population

So if the GDP per person is higher it means his saving are lower. And if the level of saving are lower then the standard of living will decline because the money available for investment is lower in amount. This will not save him enough to maintain his standard of living.

So its true because the level of saving rate of company A is higher this means the standard of living in the near future will also increase with faster pace.

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Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's firs
miv72 [106K]

Answer:

1) Mason Automotive sells 10,000,000 shares at $5 par for $30 on January 1st, 2018.  

Dr Cash 300,000,000

   Cr Common stock 50,000,000

   Cr Additional paid in capital 250,000,000

2) Ed Mason, the CEO, hires 3,000 employees, whom will receive a combined salary of $12 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2019.          

No journal entry required

Adjusting entry:

January 31, 2018, wages expense

Dr Wages expense 12,000,000

Dr FICA taxes expense 840,000

   Cr Federal income taxes withheld payable 1,200,000

   Cr State income taxes withheld payable 600,000

   Cr FICA taxes withheld payable 840,000

   Cr FICA taxes payable 840,000

   Cr Wages payable 9,360,000

3) Mason Automotive issues a bond payable on January 1st, 2018 with a face value of $200 Million at 102. The bond will have a useful life of 5 years with an interest payment of 5% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 1st,  2018.

Dr Cash 204,000,000

   Cr Premium on bonds payable 4,000,000

   Cr Bonds payable 200,000,000

(Note: When considering the amortization of the discount or premium, assume the straight line method is used).  

Adjusting entry        

January 31, 2018, interest expense

Dr interest expense 766,666.66

Dr Premium on bonds payable 66,666.67

   Cr Interest payable 833,333.33

4) Mason Automotive purchased $80 Million dollars worth of inventory on January 2nd, 2018. $80 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.  

Dr Inventory 80,000,000

       Cr Accounts payable 80,000,000      

5) Mason Automotive purchases fixed assets of $120 Million that will have a useful life of 10 years and no salvage value on January 2, 2018. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.  

Dr Fixed assets 120,000,000

   Cr Cash 20,000,000

   Cr Accounts payable 100,000,000

Adjusting entry:

January 31, 2019, depreciation expense  

Dr Depreciation expense 1,000,000

   Cr Accumulated depreciation - fixed assets 1,000,000    

6) On January 2nd, Mason Automotive shipped an order to Corby Panther Company. The shipping terms were FOB shipping point and the value of the order was $50 Million and the inventory cost was $20 Million. Assume that this sale was made on account.          

Dr Accounts receivable 50,000,000

   Cr Sales revenue 50,000,000

Dr Cost of goods sold 20,000,000

   Cr Inventory 20,000,000

Adjusting entry:

January 31, 2018, allowance for doubtful accounts (5%)

Dr Bad debt expense 2,500,000

   Cr Allowance for doubtful accounts 2,500,000

7) On January 3, Mason Automotive receives $75 Million advance payment from a customer, Michael Scott Paper Company, to manufacture 7,500 cars.        

Dr Cash 75,000,000

   Cr Deferred revenue 75,000,000

Adjusting entry:

January 31, 2019, 4,000 cars were finished and delivered

Dr Deferred revenue 40,000,000

   Cr Sales revenue 40,000,000

Dr Cost of goods sold 32,000,000

    Cr Inventory: finished cars 32,000,000

8) Mason Automotive buys a patent from Apple for $24 Million on January 3rd, 2018. The patent has a legal life of 20 years, but a the useful life of 10. Record the necessary entry as of January 3rd, 2018. Assume the patent was purchased using cash.          

Dr Patent 24,000,000

   Cr Cash 24,000,000

Adjusting entry:

January 31, 2018, patent amortization expense

Dr Patent amortization expense 200,000

   Cr Patent 200,000

9) Mason Automotive purchased $2 Million dollars worth of supplies on account on January 4, 2018.      

Dr Supplies 2,000,000

    Cr Cash 1,500,000

    Cr Accounts payable 500,000

Adjusting entry

January 31, 2018, supplies expense

Dr Supplies expense 500,000

   Cr Supplies 500,000    

10) Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $2.4 Million on January 4, 2018.  

Dr Prepaid rent 12,000,000

Dr Prepaid insurance 2,400,000

   Cr Cash 14,400,000

Adjusting entries:

January 31, 2019, rent expense

Dr Rent expense 1,000,000

   Cr Prepaid rent 1,000,000

January 31, 2019, insurance expense

Dr Insurance expense 200,000

   Cr Prepaid insurance 200,000        

11) On January 20th, Mason Automotive decides to purchase 2,000,000 shares of Treasury stock at $25 per share.

Dr Treasury stock 50,000,000

   Cr Cash 50,000,000

<h2><u>Closing journal entries:</u></h2>

Dr Sales revenue 90,000,000

    Cr Income summary 90,000,000

Dr Income summary 71,006,66.66

    Cr Wages expense 12,000,000

    Cr FICA taxes expense 840,000

    Cr interest expense 766,666.66

    Cr Depreciation expense 1,000,000

    Cr Cost of goods sold 52,000,000

    Cr Bad debt expense 2,500,000

    Cr Patent amortization expense 200,000

    Cr Supplies expense 500,000

    Cr Rent expense 1,000,000

    Cr Insurance expense 200,000

Dr Income summary 18,993,333.34

    Cr Retained earnings 18,993,333.34

8 0
3 years ago
Which of the following statements concerning the selection of risk management techniques and insurance market conditions is (are
valentinak56 [21]

Answer:

I.It's easier to purchase affordable insurance during a "soft" market than during a "hard" market

I only

Explanation:

When a purchaser of insurance wants to make a purchase he analyses the market to get a favourable condition that reduces risk and loss.

The market condition can be a soft market or hard market.

Soft market is one in which potential sellers are more than potential buyers. So supply exceeds demand. Buyers are able to buy affordable insurance.

Hard market on the other hand is when there is an upswing in market cycle. Premiums increase and capacity for insurance decreases.

It is more difficult to get affordable insurance in this market

6 0
3 years ago
A Municipal Finance Professional (MFP) lives in State A. The MFP gives $200 to the election campaign of a personal friend who is
Darya [45]

Answer:

B The payment will not result in the employing firm being banned from doing municipal securities business with State B because it was made based on a personal relationship.

Explanation:

The rule of de minimis applies to persons making donations to candidates vying for elective positions.  $250 de minimis is applicable to a person who will vote for a candidate in an election.  If a person will not vote for the candidate, the de minimis is $150.

In this case, the MFP will not be voting for the candidate.  She is allowed to donate only $150.  Any excess will be refunded.  However, since the MFP is making the donation on his personal capacity, the firm as a separate entity will not be penalized for what the MFP does with her money.  It is likely that the firm does not even do contracts with the municipality.  However, they are not based in the same area.

8 0
3 years ago
A job application is a form used to make a job request. (3 points)<br> True<br> False
TEA [102]

Answer:

I would say it is True.

Explanation:

A job application <em>form</em> states your personal information

4 0
3 years ago
____ is a policy where manufacturers are responsible for the entire life cycle of their products and packaging, including recycl
horsena [70]

Extended producer responsibility or EPR is a policy where manufacturers are responsible for the entire life cycle of their products and packaging, including recycling. It is used to help promote the integration of all the environmental costs certain goods throughout its life cycle in the market.

4 0
3 years ago
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