Answer: Demand
Explanation:
Determinants of demand includes:
(i) Income of an individual: There is a positive relationship between the income of an individual and demand for a normal good. On the other hand, there is a negative relationship between the income of an individual and demand for a inferior good. This change in income shifts the demand curve.
(ii) Prices of related goods:
Substitute goods: There is a direct relationship between the price of one good and demand for its substitute goods.
Complimentary goods: There is a inverse relationship between the price of one good and demand for its complimentary good.
This determinant of demand also shifts demand curve.
(iii) consumer preferences: Favorable consumer preferences increases the demand for a particular good and shifts the demand curve rightwards.
(iv) Number of buyers: If the no. of buyers increases in an economy then as a result demand for goods increase which shifts the demand curve rightwards and vice-versa.
(v) Expectations: If the expected price of a particular good increases in the near future then as a result demand for that good increases in present.
<h2>
Cost of goods sold of Baxter's Company = 3,06,000</h2>
Explanation:
Cost of goods sold = +Purchase + Direct Exp+ Opening Inventory - Closing Stock
85,000 + 3,23,000 - 1,02,000 = 3,06,000
Answer:
63.09%
Explanation:
Note <em>Missing question is attached as picture below</em>
Average total assets = (Opening total assets+Closing total assets)/2
Average total assets = ($396,000 + $257,000) / 2
Average total assets = $653,000 / 2
Average total assets = $326,500
Return on total assets = (Net income + Interest expense)/Average total assets
Return on total assets = ($181,000 + $25,000) / $326,500
Return on total assets = $206,000 / $326,500
Return on total assets = 0.6309342
Return on total assets = 63.09%
Answer:
(a) Journalize the payment of the bond interest on January 1, 2022.
Dr Interest payable - bonds payable 40,400
Cr Cash 40,400
The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.
(b) Assume that on January 1, 2022, after paying interest, Blossom calls bonds having a face value of $100,000. The call price is 103. Record the redemption of the bonds.
Dr Bonds payable 100,000
Dr Call premium 3,000
Cr Cash 103,000
(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.
interest expense = $405,000 x 8% = $32,400
Dr Interest expense - bonds payable 32,400
Cr Interest payable - bonds payable 32,400
