Which transaction would cause one asset to increase and another asset to decrease?

. There is an 80% probability that Tom will be in good health during the year and incur only $200 in medical expenses, but there

zaharov [31]

Answer:

The Actuarially Fair Premium that Tom have to pay for hid Health Insurance is $4,160

Explanation:

To compute the amount that Tom have to pay for Health Insurance is;

Actuarially Fair Premium = (Probability of actuality ill × Payments incurred) + (Probability of not actuality ill × Payments incurred)

Actuarially Fair Premium = (20% x $20,000) + (80% x $200)

Actuarially Fair Premium = $4,000 + $160

Actuarially Fair Premium = $4,160

5 0

3 years ago

How is a credit union different from a retail bank

a_sh-v [17]

Credit unions are not-for-profit financial cooperatives. Whose earnings are paid back to members in the form of higher saving rates and lower loan rates.Banks are for profit businesses with earning paid to stockholders only.

7 0

3 years ago

Read 2 more answers

Suppose that the Federal Reserve decides to increase the money supply with a $300 purchases of Treasury bills. Complete the tabl

shutvik [7]

A $ 300

B $ 300

C $ -300

D $ 300

Treasury bills are assets and the monetary base is a liability.

Explanation:

To increase the money supply in the economy, the federal reserve should buy the treasury bills and this will increase the money supply in the economy, leading to more demand in the economy and therefore there will be growth and development of the economy.

With the increase in the purchase of the treasury bills by the federal reserve, the money supply will increase by $300.

4 0

3 years ago

The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.Accounts Debit CreditCash $1

zepelin [54]

Answer:

These can be prepared as shown below:

Explanation:

1. Prepare a statement of stockholder equity for the year ends December 31, 2018, assuming no common stock was issued during 2018.

To do this, the income statement is first prepared by ignoring tax as follows:

Fightin' Blue Hens Corporation

Income Statement

for the year ended December 31, 2018.

Details $

Service Revenue 300,000

Salaries Expense (200,000)

Rent Expense (10,000)

Depreciation Expense (20,000)

Interest Expense (3,000)

Earnings for the year  67,000 

Therefore, we have:

Fightin' Blue Hens Corporation

Statement of Stockholder Equity

for the year ends December 31, 2018

Details $

Common stock 100,000

Retained Earnings 40,000

Earnings for the year 67,000

Stockholder Equity 207,000

2. Prepare a classified balance sheet as of December 31, 2018.

A balance sheet is a balance sheet that have different classifications suchas fixed assets, current assets and liabilities, long-term liabilities, and stockholder equity. This can be prepared as follows:

Fightin' Blue Hens Corporation

Classified Balance Sheet

for the year ends December 31, 2018

Details $ $

Fixed Assets

Equipment 200,000

Accumulated Depreciation (115,000)

Net Fixed Assets 85,000

Current Assets

Cash 10,000

Accounts Receivable 130,000

Prepaid Rent 4,000

Supplies 20,000

Total current assets 164,000

Current Liabilities

Accounts Payable (10,000)

Salaries Payable (9,000)

Interest Payable (3,000)

Working capital 142,000

Long-term Liabilities

Notes Payable (due in two years) (20,000)

Net Total Assets  207,000

Financed by:

Common stock 100,000

Retained Earnings 40,000

Earnings for the year 67,000

Stockholder Equity 207,000

Note: When a balance sheet is accurately prepared, the net total assets and the stockholder equity must be equal as above with both equaling $207,000.

6 0

4 years ago

Martinez Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the

nikdorinn [45]

Answer:

The cost assigned to leashes for supervising is $180,000

Explanation:

Estimated Overhead Cost Drivers Overhead Rates

$ 260,000.00 130,000 $ 2.00 Per Order

$ 400,000.00 800,000 $ 0.50 per Part

$ 300,000.00 25,000 $ 12.00 Per Hour

Labor hours for the leashes is 15,000 hours

Cost assigned to leashes for supervising = 15,000 x 12 = $180,000

3 0

3 years ago