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Svetllana [295]
3 years ago
13

Use commercial bank and Federal Reserve Bank balance sheets to demonstrate the immediate effect of each of the following transac

tions on commercial bank reserves. Assume that the initial reserve ratio is 20 percent. Fill in the new balance in the column in the balance sheet that corresponds with each of the following transactions. Consider each transaction separately, not cumulatively.(A) Federal Reserve Banks purchase $2 billion worth of securities from banks.(B) Commercial banks borrow $1 billion from Federal Reserve Banks at the discount rate.(C) The Fed reduces the reserve ratio from 20 percent to 19 percent.
Business
1 answer:
Leona [35]3 years ago
6 0

Answer: A

Explanation: That’s it

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On October 25, 2019, the company paid $29,400 rent in advance for the six-month period (November 2019 through April 2020). On De
enot [183]

Answer:

Rent expense (Dr,)              $9,800

              Prepaid Rent                             $9,800

Explanation:

The accrual concept of accounting requires us to record the expenses in a period in which they are incurred rather than when cash is paid. When the company paid advance rent of six months at the end of October, it will record a current asset (Unexpired resource) on the face of balance sheet. At the end each accounting period, it is required to expense out the resources (benefits) that are expired (utilized). This can be done through straight-line method. So, on December 31, 2019, the rent expense of two months that is of November and December should be charged to profit and loss statement in-order to record the expense of related period.

<u>Workings</u>

Rent expense per month = 29,400 / 6 = $4,900.

⇒ Rent expense of two months = 4,900 * 2 = $9,800.

This amount should be written off and the required adjusting entry is:

Rent expense (Dr,)              $9,800

            Prepaid Rent                             $9,800

4 0
4 years ago
Marco is from the Mediterranean coast of Greece and Forough is from Iran. While visiting their grocery store, you notice that th
Valentin [98]

Answer:

A. polychronic

Explanation:

Polychronic. Here, they believe in doing multiple tasks at a time complementing the monochronic culture.

Polychronic cultures like to do multiple things at the same time. A manager's office in a polychronic culture typically has an open door, a ringing phone and a meeting all going on at the same time. Though they can be easily distracted they also tend to manage interruptions well with a willingness to change plans often and easily. People are their main concern (particularly those closely related to them or their function) and they have a tendency to build lifetime relationships. Issues such as promptness are firmly based on the relationship rather than the task and objectives are more like desirable outcomes than must do's.

8 0
3 years ago
TB MC Qu. 6-70 Awtis Corporation has a margin of ... Awtis Corporation has a margin of safety percentage of 25% based on its act
icang [17]

Answer:

$39,160

Explanation:

Awtis corporation has a margin of safety percentage of 25%

= 25/100

= 0.25

The break even point is $213,600

The variable expenses is 45%

= 45/100

= 0.45

The first step is to calculate the contribution margin ratio

Contribution margin ratio= 1-variable expenses

= 1-0.45

= 0.55

The fixed expenses can be calculated as follows

Fixed expenses= break even sales × contribution margin ratio

= $213,600×0.55

= 117,480

The total actual sales can be calculated as follows

= Break even sales/(1-margin of safety)

= $213,600/(1-0.25)

= $213,600/0.75

= $284,800

Therefore, the actual profit can be calculated as follows

Actual profit= Contribution margin ratio×sales - fixed expenses

= 0.55×284,800-$117,480

= $156,640-$117,480

= $39,160

Hence the actual profit is $39,160

7 0
3 years ago
Drag each label to the correct location on the image.
Alla [95]
Closing price coupon rate, face value, maturity date ... Tags related to this set ... Identify the feature of stocks and bonds ... Match each cost with the investment type to which it relates. ... A-rated bond, blue-ship stock
Rating
4 0
3 years ago
The computer workstation furniture manufacturing that Santana Rey started in January is progressing well. As of the end of June,
zhenek [66]

Answer:

June Costs of the raw materials used  for each of the three jobs and in total.

                                  Job 602             Job 603        Job 604        Total

Direct materials            $ 900            $ 3,300        $ 2,700           6900

Explanation:

<u>Business Solutions</u>

                                          Job 602        Job 603        Job 604

Direct materials                 $ 1,500          $ 3,300        $ 2,700

Direct labor                           800              1,420              2,100

Overhead                              400                710                1,050

Job 602   May:  Costs

Direct Materials, $600;

Direct Labor, $180;

Overhead, $90

June Costs of the raw materials used  for each of the three jobs and in total.

                                  Job 602             Job 603        Job 604        Total

Direct materials            $ 900            $ 3,300        $ 2,700           6900

Job 602 total costs are $ 1500 and raw materials costs in May are $ 600. The remaining $ 900 is consumed in June.

Raw materials Job 603 and 604 are consumed in June in full amount

8 0
4 years ago
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