Answer: Money Supply Decrease of $50 million.
Explanation:
$40 million was deposited while $50 million was withdrawn.
The net change in the banking system would therefore be,
= 40 - 50
= -$10 million
($10 million ) means that more money left than came in.
The money supply can be calculated as the net change multiplied by the money multiplier.
The Money Multiplier is denoted as 1/reserve requirement.
Change in Money Supply is,
= -10 million * 1/20%
= -$50 million
Going by the negative number it means that Money Supply reduces by $50 million.
Answer with its Explanation:
Transaction 1: The purchase of equipment is increase in the fixed assets and as the amount paid is in cash, the decrease in cash asset will also be with the same amount. This means the net effect on assets will be zero.
Accounting Equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Equipment 318,770 - Cash $318,770 = Zero Net Effect
Transaction 2: The increase in the equity will increase the current asset as well here, which means:
Fixed Assets + Current Asset = Equity + Liability
Current Assets + $139,050 = Issued common stock + $139,050
Transaction 3: The purchase of inventory on account means that the current asset would be increased and the payables will increase with the same amount. The effect on the accounting equation is given as under:
Fixed Assets + Current Asset = Equity + Liability
Current Asset + $70,94 = Current liabilities + $70,940
Answer:
keep your own records to compare with your financial institutions records
Answer:
33.8%
Explanation:
Purchase price of the bond will be computed using the formula below.
where A = annual coupon = 10% * 1000 = 100
r = yield to maturity = 0.1384
n = time to maturity = 20 years
F = face value = $1,000
p = price of the bond.
Therefore, if Janet sold the bond a year later for $994.79,
the profit on sale = 
= 33.8% profit (rate of return).
Answer:
e. None of these.
Explanation:
The deductible expenses are expenses that are wholly, necessarily and exclusively for business purpose. This excludes the entertainment cost which is the only avoidable cost in the classes of cost given.
Hence, Sophie's deductible expenses are
= $3,000 + $800 + $600
= $4,400
