Answer:
Explanation:
The journal entry is presented below:
On January 2
Bond payable A/c Dr $1,500,000
To Cash A/c $1,500,000
(Being the redemption of the bonds is recorded)
The discount on bonds payable would be matured on the date of maturity so in this case the face value would be recorded and it is equaled to the carrying value
Answer:
C) There will be an increase in government purchases as the economy has more income.
Explanation:
The long run aggregate supply (LRAS) curve includes the output of an economy when all the factors of production are being used at full capacity. The position of the LRAS curve depends on the number of workers, the amount of capital, and the available technology.
Every time an economy (or even a company) experiences a significant technological progress, its productivity increases, increasing the total output.
Answer: Option C is true about Accruals basis
Explanation:
Cash basis states that transactions are only recognized when cash is received and paid. Some of the short comings of the cash basis was it didn’t regard the period in which transactions occured, etc
Accrual basis states that revenue is recognized when earned and expenses when incurred and not when cash is received or paid.
Option 1 is wrong because cash basis only records cash transactions.
Option 2 is wrong because Accruals basis is recognized by GAAP
Answer:
The money supply will increase by 12,500 dollars
Explanation:
when the money is deposited the loan will make the required reveneus and start loans for the remained over and over
The multiplier effect will be 1/required reserve ratio: 1/0.2 = 5
we multiply 2,500 dollars times the money multiplier of 5
total icnrease inthe money supply: 2,500 x 5 = 12,500
Answer: The answer is given below
Explanation:
It should be noted that the split limits approach is used by several auto insurance policies and this simply combines per person and occurrence approach.
For every accident, three dollars amount are being applied. The first limit is simply a per person limit which is the maximum amount that one injured person will get. The second limit is simply the per occurrence limit which is the maximum amount that all the injured persons will get while the third limit applies during the claim of property damage as it is the maximum amount that will be paid for damages by an insurer to property that results from the accident.
since the split is 50/100/20, it implies that $50,000 medical coverage for every injured person, $100,000 injury coverage for all accident victims and then $20,000 for property damage.
1. Bill's insurance company will pay $20000.
2. Amount Bill will pay:
= $17,603 + $3,136 + $9,659 - $20,000
= $30,398 - $20,000
= $10,398