<u>Journal entry for the collection of the note at its maturity:</u>
It is given that the company lends $40,000 on august 1, 2014, accepting a 9-month, 12% interest note. And it has accrued interest at its December 31, 2014 year-end, so Interest Receivable shall be 40,000*12%*5/12 = $2,000. The journal entry to record the collection of the note and interest at its maturity date 30th April 2015 shall be as follows:
Account titles Debit Credit
Cash $43,600
Interest receivable $2,000
Interest Revenue $1,600
Notes Receivable $40,000
(Being notes receivable collected on its maturity date)
(Note: The interest revenue is calculated for the period of Jan. 1, 2015 to April 30, 2015 = 40,000*12%*4/12 = $1,600)
It is easy, you would use a protractor!
Answer:
Potential GDP is:
C. Is the maximum output firms are capable of producing.
Explanation:
Potential gross domestic product (GDP) is defined in the OECD's Economic Outlook publication as the level of output that an economy can produce at a constant inflation rate. Potential output occurs when an economy produces what it can using all of its resources. These resources include technology, equipment, natural resources, and employees. Potential output can also be looked at in terms of supply and demand.
Although an economy can temporarily produce more than its potential level of output, that comes at the cost of rising inflation.
The changes in potential GDP are caused by the increase in quantity of physical or human capital So the larger quantity of physical capital and human capital, the greater is potential GDP.
The difference between actual and potential GDP is that potential GDP is the level of production of goods and services that the economy is capable of if its workforce is fully employed and its capital stock is fully utilized. Actual GDP is the actual output of goods and services. Real potential GDP is the CBO's estimate of the output the economy would produce with a high rate of use of its capital and labor resources. The data is adjusted to remove the effects of inflation.
Answer
Shifts PPC to the right-A new technology is invented to produce more food grains in the country.
point on original PPC- the country is using all its resources efficiently.
shifts PPC to the left- many of the country's young people died in an earthquake
unattainable point- the country plans to produce with the available resources
Explanation
PPC -This is the short form of Production possibility curve. This is an indicator which shows the maximum production of two or more goods and services which can be achieved in the economy of a nation when the resources are well distributed and fully utilized in a productive manner. The causes of increment in output where the curve may shift to left or right or attainable point and even to the original PPC is due to the distraction of capital equipment in the country.This depends on how the country is using its resources.
