Solution :
Let us suppose that a company cannot predict the market value of an equipment that acquired by the reference to the similar purchase for the cash. Thus the company finds cost of purchased of the equipment by exchanging :
-- the market price of the bonds when they have an established price in the market.
-- the market price of the bonds when the common stocks does not have a established market price.
-- market price of the equipment when the similar kind of an equipment have a determinable value in the market.
Answer:
21 times
Explanation:
Calculation to determine Beer Corporation's price earnings ratio
First step is to get Calculate the Earning per share ( EPS)
EPS=$216,000 ÷ $58,500
EPS= $3.69
Now let calculate the price earnings ratio
Price earnings ratio= $79 ÷ $3.69
Price earnings ratio= 21 times
Therefore Beer Corporation's price earnings ratio is 21 times
Answer:
$2.5 per share
Explanation:
Earning Per share is the amount of earning for the period that allocated to each share. Normally it is calculated using common shares. The earning used in this calculation is purely the earning that is associated with the shareholders of the company. We can have this earning after deducting all the expenses and preferred dividend as well.
Formula:
Earnings per share = Net Income / Numbers of common Shares
Earnings per share = $450,000 / 180,000
Earnings per share = $2.5 per share
Answer:
Transactions that create revenue :
Transaction B
Transaction C
Transaction D
Journal Entries :
<u><em>Transaction B</em></u>
Cash $900 (debit)
Sales Revenue $900 (credit)
<u><em>Transaction C</em></u>
Cash $10,000 (debit)
Unearned Revenue $10,000 (credit)
<u><em>Transaction D</em></u>
Cash $3,500 (debit)
Accounts Receivable $3,500 (credit)
Explanation:
Transactions that create revenue
Hint ; Revenue is the increases in income that results in increases in assets and decreases in liabilities
Answer:
The Central Bank is trying to increase money supply.
Explanation:
When the Central Bank makes moves to increase reserves, it means that it is simply trying to mop up excess cash from the economy to fight inflation. Spiking inflation means that the power of a currency is gradually being eroded. The Central Bank cannot allow this to happen so it hits the "Reduce Money In Circulation" button. It does this by reviewing upwards, the money reserves which commercial banks must hold with the Central Bank.
It can also increase the rate at which it lends to the Commercial Banks and Investment houses. Commercial Banks, in turn, transfer the additional cost of borrowing to businesses who will seek loans. This slows down the rate at which money is pumped into the economy.
In the question, however, we notice that the Central Bank has enervated its reserves. This means that it is pumping more money into the economy. This economic move may have been executed to prevent the economy from slipping into a recession or simply to stimulate the economy.
In the short run, increased money supply means, businesses have more access to funds from commercial banks. More funds mean, more investment. Increased investment spending means the businesses will need to expand operations, hire more staff, and the multiplier effect goes on and on.
Cheers!
