Answer:
Cash account in the amount of $10,100
Explanation:
The journal entry to be recorded for the receipt of payment is as:
Cash A/c.............................................Dr $10,100
Note receivable A/c...................Cr $10,000
Interest Revenue A/c..................Cr $100
Being recoded the receipt of payment
As payment is received so asset is increasing and any increase in asset is debited. Therefore, cash account is debited. And the note receivable got decrease will be credited and the interest revenue is also credited.
Computation of interest revenue is as:
Interest revenue = Amount × % of note × Days / Number of days in a year
= $10,000 × 6% × 60 / 360
= $100
Note: Assume 360 days in a year
Answer:
a. have been recorded on the company's books but not yet by the bank
Explanation:
The deposit in transit means the deposit is recorded in the book of the company accounts but the same is not recorded in the bank books of account unless when they are not deposited.
So while preparing the bank reconciliation statement, we added the deposit in transit and deduct the outstanding checks in the bank books of accounts
Answer:
The shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B would be greater than $50 billion.
Explanation:
Basically, aggregate demand can suffer two types of movements: displacements or changes in the slope. We are assuming a straight slope, but we could well analyze the case of an aggregate demand that is not straight.
DISPLACEMENTS
They are produced by changes in autonomous consumption. Changes in autonomous consumption may be due to changes in:
- Income distribution
- Access to credit
- Expectations
- Population changes
- Changes in relative prices between goods that belong to autonomous consumption (some foods) and goods that do not belong to autonomous consumption
CHANGES IN THE PENDING
They are produced by changes in the marginal rate to be consumed. Changes in the marginal rate to be consumed may occur due to:
- Changes in the utility function: they can change the preference for savings.
- Changes in income distribution
- Changes in the interest rate
<span>Palding hires an asian company to produce a specified volume of sports equipment that still carries spalding's name. this is an example of contract manufacturing. Contract manufacturing </span>occurs when a company hires a foreign company to produce a specified volume of the firm's product to specification. However, the final <span> product carries the domestic firm's name. </span>
<span>The herfindahl-hirschman index is the measure of the percentage market share of each firm summed over the largest 50 firms in a market.
HHI is the measure of market concentration. It is the commonly accepted measure. if H</span>erfindahl-Hirschman index is low and its four firm concentration ratio is low then the market is considered competitive.
