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Elena-2011 [213]
3 years ago
15

Marco Nelson opened a frame shop and completed these transactions: Marco started the shop by investing $40,700 cash and equipmen

t valued at $18,700 in exchange for common stock. Purchased $140 of office supplies on credit. Paid $1,900 cash for the receptionist's salary. Sold a custom frame service and collected $5,200 cash on the sale. Completed framing services and billed the client $270. What was the balance of the cash account after these transactions were posted?
Business
1 answer:
maxonik [38]3 years ago
3 0

Answer:

$44,000

Explanation:

Given that,

Marco started the shop by investing = $40,700 cash  

Equipment valued = $18,700 in exchange for common stock.

Purchased office supplies on credit = $140

Paid cash for the receptionist's salary = $1,900

Balance of the cash account after these transactions were posted:

= Cash Investing in Shop - Paid cash for receptionist salary + Receive cash from sale of frame

= $40,700 - $1,900 + $5,200

= $44,000

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The correct answer to this open question is the following.

Although the question is incomplete because it does not attach the model to answer it we can comment on the following.

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If a benevolent social planner chooses to produce less than the equilibrium quantity of a good, then
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A Treasury bill with a par value of $100,000 due three months from now is selling today for $97,087 with an effective annual yie
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The effective annual yield of a treasury bill is equivalent to 12.55%.

Option B is the correct answer.

<h3>What is the treasury bill?</h3>

The treasury bill is the trading instrument that is issued in the money market by the government.

Given values:

Par value: $100,000

Future value: $97,087

Number of years from now: 3 years

Step-1 Computation of interest rate of treasury bill:

\rm\ Interest \rm\ rate \rm\ on\rm\ treasury \rm\ bill=\frac{\rm\ Par \rm\ value - \rm\ Future \rm\ value}{\rm\ Future \rm\ value} \\\rm\ Interest \rm\ rate \rm\ on\rm\ treasury \rm\ bill=\frac{\$100,000-\$97,087}{\$97,087} \\\rm\ Interest \rm\ rate \rm\ on\rm\ treasury \rm\ bill=0.03

Step-2 Computation of equivalent yield the bill:

\rm\ Equivalent \rm\ annual \rm\ yield =(\rm\ 1+ \rm\ interest \rm\ rate)^{\rm\ Number \rm\ of \rm\ years}  - 1\\\rm\ Equivalent \rm\ annual \rm\ yield=(1+0.03)^{4} -1\\\rm\ Equivalent \rm\ annual \rm\ yield=1.01255-1\\\rm\ Equivalent \rm\ annual \rm\ yield=0.01255

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Learn more about the equivalent yield in the related link:

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