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4 years ago

The summaries of balance sheet and income statement data follow.

Business

1 answer:

LuckyWell [14K]4 years ago

3 0

Answer:

Total owner’s equity = $23,000

Total liabilities =$50,000

Investment by owner = $20,000

Explanation:

We use the accounting equation which is presented below:

Total assets = Total liabilities + owners equity

At the beginning of the year

The owner equity would be

= Total assets - total liabilities

= $85,000 - $62,000

= $23,000

At the end of the year

The total liabilities would be

= Total assets - total owners equity

= $110,000 - $60,000

= $50,000

The investment by owner would be

= Ending balance of owners equity + drawing - opening balance of owners equity + total expenses - total revenues

= $60,000 + $18,000 - $23,000 + $140,000 - $175,000

= $20,000

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The entry made at the end of the accounting period to record wages incurred but unpaid is:________

faltersainse [42]

The entry made at the end of the accounting period to record wages incurred but unpaid is Accrued expenses, An expense that is recorded on the books before it has been paid is referred to as an accumulated expense, also known as accrued liabilities.

The accounting period in which the expense is incurred is used to record it. Accrued expenses are listed as current liabilities on a company's balance sheet since they represent a company's obligation to make future cash payments. An estimated expense may not match the supplier's invoice, which will arrive at a later time.

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2 years ago

(TCO E & F) A bank is facing a forecast of rising interest rates. How should they set the repricing and duration gap?

Aleonysh [2.5K]

Answer:

The repricing and duration gap can be set likely by :

A. Positive repricing gap and negative duration gap

Explanation:

Here, we can see the mentioned topic is

The forecasting of rising interest rates. So, the bank is facing this issue then they will have to set the values as :

A. Positive repricing gap and negative duration gap

Forecasting of rising interest rates: It is a very tough thing to do. In financial analysis this is one the hardest assumptions that have to be made.

Its prediction in financial analysis is very complicated. This results in the rates to a lower value which results in money of the bank to outflow.

As by forbes for this year it had been predicted that it would not be rising interest rates in 2020.

Even that the growth of economy will be very low and all will be worrying about the inflation.

A high recession will be noticed by us.

This will results in money lending rates to be quite too high.

5 0

3 years ago

Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $5

Brut [27]

Answer:

($500,000)

Explanation:

Economic profit = revenue - explicit costs - implicit costs (opportunity cost)

The revenue is = $3.00 x 250,000 peaches

= $750,000

The explicit costs are = land cost + equipment rent + salaries

= $1,000,000 + 50,000 + 140,000

= $1,190,000

The implicit costs are = interest income + earnings as a shoe salesman

= $20,000 + $40,000

= $60,000

Economic profit = $750,000 - $1,190,000 - $60,000

= ($500,000)

Thus, the farmers' total economic profit is actually a total economic loss of $500,000

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4 years ago

The owner of a store that sells fine-quality fabrics for home seamstresses bemoans the fact that few young women know how to do

podryga [215]

Answer: This case is an example of <em><u>core competencies that further have turned into core rigidities.</u></em>

In this particular case , the store was capable of catering to the demands of the market. Thus providing excellent service and technical advice.

But with the dawn of an era, now the store is earning lower-than-average returns. Also this is to be pondered upon that in current era only few potential customers are able to appreciate the premium quality of the fabrics.

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3 years ago

If the lease factor is given as 0.00065, what interest rate is that equivalent to?

mariarad [96]

As a handy tip, we were told that in order to convert the lease factor of a certain amount or transaction to interest rate, we just have to multiply the value by 2, 400.
interest rate = (0.00065)(2400) = 1.56%
Thus, the answer for this item is 1.56%.

5 0

4 years ago