How do banks make a profit?

Page 576 14.3. Recent Changes in Capitalism This animation explores different reasons why people work long hours even when their

kondaur [170]

Answer:

The summary including its perceived task is demonstrated in the following segment on the interpretation.

Explanation:

The further you pay, then you pass up to make a change from generating income. This would be called opportunity cost since taking a short break is losing the chance to go somewhere else (i.e. gain further extra cash).
This is much less the continuation of something like a withheld opportunity than that of the recovery on the alternative you picked.

6 0

3 years ago

Exercise 5-17A Record notes receivable and interest revenue (LO5-7) On April 1, 2021, Shoemaker Corporation realizes that one of

garik1379 [7]

Answer:

The Journal entries are as follows:

(a) On April 1, 2021

Notes receivable A/c Dr. $600,000

To Cash A/c $600,000

(To record loan given)

(b) On December 31, 2021

Interest receivable ($600,000 × 11% × 9/12) A/c Dr. $49,500

To Interest revenue $49,500

(To record accrued interest)

(c) On April 1, 2022

Cash A/c Dr. $666,000

To Notes receivable $600,000

To Interest receivable $49,500

To Interest revenue $16,500

(To record collection)

Notes:

Interest revenue on April 1, 2022:

= 11% of loan amount for 12 months - Accrued interest

= 0.11 × $600,000 - $49,500

= $66,000 - $49,500

= $16,500

7 0

3 years ago

An entrepreneur can best build social capital by:

Brrunno [24]

An entrepreneur can best build social capital by using reciprocation..

<u>Explanation:</u>

An entrepreneur is a person who own his own business and takes risks. He is responsible in getting profits and bearing losses associated with the business he started. He can attain capital for starting business in many ways like taking loans or investing his money in smaller scale business. He can also raise funds by buying shares, etc.

An entrepreneur can use of reciprocation for the purpose of building social capital. Reciprocation refers to the relationship between give and take.The entrepreneur can undergo activities like building trusts with the customers and can be involved in doing volunteer activities.

5 0

4 years ago

Bank Reconciliation and Entries The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $12,270. The bank st

prohojiy [21]

Answer: Please see below for the reconciliation of bank and book balance for Stone systems as $15,310

Explanation:

Bank Reconciliation Statement for July 31 , 20Y5 for Stone Systems

Particulars Amount

Balance on bank statement $15,440

Additions:

Outstanding Deposits $5,790

Deductions:

Outstanding checks $5,560

Bank Error (400-40) $360

Adjusted bank balance $15,310

Balance in books $12,270.

Additions:

Note Collection plus interest $3,010

Incorrect recording of check

($880-$800) $80

Deductions

Bank Service charges $50

Adjusted book balance $15,310

5 0

4 years ago

Griffin's goat farm, inc., has sales of $680,000, costs of $342,000, depreciation expense of $86,000, interest expense of $53,00

Oksana_A [137]

Addition to Retained Earnings will be the amount will be Net Income as calculated using the above information:

Net income will be calculated as below:

Sales...........................................................$680000

Less: Cost of Sales.................................$342000

Less: Depreciation..................................$86000

Less: Interest Expense.........................$53000

Earnings Before Tax...............................$199000

Less [email protected] 23%.........................................$45770

Net Income..............................................$153230

Thus Income of $153230 will be added to Retained earnings and Cash dividend of $40000 will be reduced from therein.

8 0

3 years ago