The income statement will present

A manufacturer produces 500,000 MP3 players in the first quarter of the year. It sells 400,000 of them and adds 100,000 of them

Digiron [165]

Answer:

$100,000 is accounted in first quarter GDP as change in inventory

Explanation:

Changes in inventory is accounted in the current period GDP as it is an investment. It is a part of gross private investment of GDP. Changes in inventory happens when closing inventory differs from opening inventory.

When sales are more than goods produced, it indicates that the company has purchased its own inventory for investment purpose.

In this case $100,000 inventory in quarter 1 would be included in quarter 1 GDP as part of private investment.

3 0

3 years ago

Samson Enterprises issued a ten-year, $20 million bond with a 10% interest rate for $19,500,000. The entry to record the bond is

erastovalidia [21]

Answer:

Assets: increase by 19,500,000

Liablities: increase by 19,500,000

Equity: no effect

Explanation:

cash proceeds: 19,500,000

face value: 20,000,000

discount 500,000

As the bonds issued were sold below par there is a discount.

the entry will be:

cash 19,500,000

discount on BP 500,000

bonds payable 20,000,000

This will generate an increase on assets for 19,500,000

and increase liablities for 19,500,000

The issuance of bonds do not generate revenues or expenses. So the equity remains unchanged-

3 0

3 years ago

The New Deal sought to help the United States out of the Great Depression by providing relief to people in need, by creating pro

Alinara [238K]

Answer:

CCC & WPA: The Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA) was set up to provide employment to the americans and to "stimulate" the economic growth after the era of graet depression. The WPA and CCC started many public projects like road building , schools, airports, hospitals, parks, dams.
Social Security Act: This law was enacted to provide Financial aids to unemployed people,senior citizens,disable people and dependent mothers with children's.
Agricultural Adjustment Act: This act was introduced to control the fall in agricultural prices .
The National Industrial Recovery Act: As per the act various laws pertaining to the industrial code of conduct was established.This act also limited the production of certain consumer good in order to drive up the prices.
TFDIC & Bank Reform: To resolve the banking Crisis the banking reform acts was passed .FDIC was created to restore the faith of the Americans in the banking system.
SEC- Stock Market Reform: The SEC (Securities and Exchange Commission) was developed to regulate Wall Street and the stock market exchanges. The agency kept a check on the fraud and the fradulant practices in the stock markets by banks and corporations

8 0

3 years ago

Brady industries has average variable costs of $1 and average total costs of $3 when it produces 500 units of output. the firm's

Karolina [17]

C. $1,000

$1 and average total costs of $3 when it produces 500 units of output. the firm's total fixed costs equal 1,000 dollars.

8 0

3 years ago

CircuitTown commenced a gift card program in January 2018 and sold $12,900 of gift cards in January, $19,950 in February, and $1

MatroZZZ [7]

Answer: $12,900

Explanation:

Given that,

sold gift cards in January = $12,900

sold gift cards in February = $19,950

sold gift cards in March = $19,800

During 2018, gift card redemptions were:

January = $8,400

February = $5,700

March = $5,550

Revenue recognized in 2018 with respect to January gift card sales:

= Gift card redemption in January + Gift card breakage

= $8,400 + ($12,900 - $8,400 )

= $8,400 + $4,500

= $12,900

Out of this $8,400 will be gift card redemption and $4,500 gift card breakage.

8 0

3 years ago