Answer:
The Journal entry is as follows:
Interest expense A/c Dr. $100
To Interest payable A/c $100
(To record the interest expense for the first month)
Workings:
Amount borrowed = $10,000
Annual interest rate = 12%
Interest is due at the end of the year
Time period = 1 month
Therefore,
Interest expense = $10,000 × 0.12 × (1 ÷ 12)
= $100
According to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 breached the Fed's primary mandate, and worsened the financial crisis of 2008.
<h3>What caused the Lehman Brothers' failure?</h3>
The main cause of the failure of Lehman Brothers Investment Bank was its involvement in the subprime mortgage market.
Lehmann Brothers recorded unprecedented loss due to the 2008 subprime mortgage crisis.
The investment bank held onto large positions in subprime and other lower-rated mortgage tranches when securitizing the underlying mortgages.
Thus, according to Prof. St. Clair, allowing Lehman Brothers to fail in 2008 was a terrible decision because its failure breached the Fed's primary mandate, and worsened the financial crisis of 2008.
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Answer: production in excess of normal capacity cannot be sold.
Explanation:
We say that there's a favorable volume variance in a situation whereby the production that's budgeted is less than the actual production.
Favorable volume variances may be harmful when production in excess of normal capacity cannot be sold. This is because since it can't be sold, this can bring about losses to the business.
Answer:
more resources and management attention tend to get channeled toward the international division than toward the domestic divisions
Explanation:
A firm that uses an international division structure sometimes experiences intra organizational conflict because MORE RESOURCES AND MANAGEMENT ATTENTION TEND TO GET CHANNELED TOWARD THE INTERNATIONAL DIVISION THAN TOWARD THE DOMESTIC DIVISIONS.
Based on the fact that London Corp, issued 1,000 shares at $20 per share, the effects of this transaction are:
- Increase in cash
- Increase in common stock
<h3>What happens when stock is issued?</h3>
When stock is issued newly, the stock will be sold for cash which in this case is;
= 1,000 x 20
= $20,000
This means that cash in the company has increased.
Something else that will increase is the common stock. This is the account where the value of the issued stock will go to.
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