One benefit of specialization is that it

Presented below are three economic events. In each column, indicate whether the event increased, decreased, or had no effect on

Alex17521 [72]

Answer:

(a) Purchased supplies on account.

Increase assets and liabilities

(b) Received cash for providing a service.

Increase assets and equity

(c) Expenses paid in cash.

Decrease assets and equity

Explanation:

(a) The company acquire an assets but to do so; it take a liability. In the future it will be forced to pay the credit given today

(b) The company receive an assets(cash) by prvoviding services which is the main activity. The equity represebt both, the owner investment and the earning of the business. In this case this is an earning so it increase equity

(c) The rgannizatioon used an asset to afford their obligation. This is a negative result thus; equity decrease

5 0

4 years ago

National Bank currently has $1,550 million in transaction deposits on its balance sheet. The current reserve requirement is 14 p

jenyasd209 [6]

Answer:

Explanation:

Purchase of securities by the federal bank

To purchase any securities the trade dealers at desk firstly call to government securities dealers of major commercial and investment banks. The govt. securities dealers provide the list of securities they want to sale.

This list also shows the maturity, denomination, and prices of securities. The FRNBY traders purchase securities at the lowest prices. They will notify the government bond agencies for the payment to selling dealers for the securities.

Panel A: Initial Balance Sheets: (IN MILLIONS)

FED

Assets- Securities: $56

Liabilities- Reserve Accounts: $56

National Bank

Assets- Loans: $644

Reserve Deposits at Fed: $56

Liabilities- Transaction deposits: $700

Panel B: After All Changes: (IN MILLIONS)

FED

Assets- Securities: $43.071

Liabilities- Reserve Accounts: $43.071

National Bank

Assets- Loans: $674.786

Reserve Deposits at Fed: $43.071

Liabilities- Transaction deposits: $717.857

New initial required reserves = 0.06 × $700 million = $42 million

Change in bank deposits = (1/(0.06 + (1 − 0.50))) × ($56 million − $42 million) = $25.000 million

Loans:

$725.000 million − $43.500 million = $681.500 million

Transaction deposits:

$700 million + ($14 × (1/(0.06 + 0.50)) = $725.000 million

Reserve deposits at Fed:

$725.000 million × 0.06 = $43.500 million

Panel A: Initial Balance Sheets: (IN MILLIONS)

FED

Assets- Securities: $56

Liabilities- Reserve Accounts: $56

National Bank

Assets- Loans: $644

Reserve Deposits at Fed: $56

Liabilities- Transaction deposits: $700

Panel B: After All Changes: (IN MILLIONS)

FED

Assets- Securities: $44.100

Liabilities- Reserve Accounts: $44.100

National Bank

Assets- Loans: $690.900

Reserve Deposits at Fed: $44.100

Liabilities- Transaction deposits: $735.000

New initial required reserves = 0.06 × $700 million = $42 million

Change in bank deposits = (1/(0.06 + (1 − 0.70))) × ($56 million − $42 million) × 0.90 = $35.000 million

Loans:

$735.000 million - $44.100 million = $690.900 million

Transaction deposits:

$700 million + ($14 × 0.90 × (1/(0.06 + 0.3))) = $735.000 million

Reserve deposits at Fed:

$735.000 million × 0.06 = $44.100 million

6 0

3 years ago

Courts Distributors needed two hundred compact refrigerators on a rush basis. It contacted Eastinghouse Corporation, a manufactu

Romashka [77]

Answer:

Courts Distributors and Eastinghouse Corporation

Dispute over Contract Price

The two parties have a legal contract. The contract was established when Courts requested Eastinghouse to send the refrigerators and bill later.

The exact price for the contract is in dispute. This dispute can be resolved between the parties. Reference to the market price will help resolve the dispute, otherwise, the parties may seek alternative dispute resolutions, like litigation, mediation, or arbitration.

Explanation:

a) Data and Analysis:

Eastinghouse's invoice price for the refrigerators = $140,000

Courts' adopted market price = $120,000

b) Since Courts' reference to the price is with regard to the wholesale market price, it may be that Eastinghouse quoted the retail price instead. Since Courts is a distributor, it has the right to be charged a wholesaler's price and not a retailer's. Therefore, we can conclude that after due reference to the prevailing market price of similar refrigerators, the two parties may agree to a price of $120,000 or a little higher.

7 0

3 years ago

Maxim Corp. has provided the following information about one of its products: Date Transaction Number of Units Cost per Unit 1/1

aniked [119]

Answer:

$64,000

Explanation:

Calculation to determine the cost of goods sold using the average cost method

First step is to calculate the Average cost

Average cost = [(200 × $140) + (400 × $160) + (100 × $200)] ÷ 700 units

Average cost= $160

Now let calculate the Cost of goods sold

Cost of goods sold = $160 × 400 units

Cost of goods sold = $64,000

Therefore the cost of goods sold using the average cost method will be $64,000

5 0

3 years ago

Please help for brainliest

amm1812

Answer:

C balance

Explanation:

it shows balance when you withdraw money

4 0

3 years ago

One benefit of specialization is that it​

One benefit of specialization is that it