Answer:
Asset Allocated cost
Land $58,000
Building $188,500
Equipment $43,500
Debit Assets $290,000
Credit Note payable $290,000
Being entries to recognize the purchase of assets by note payable.
Explanation:
The cost of each asset (land, building, and equipment) will be allocated to them based on the market value. The higher the market value, the higher the cost apportioned to each asset from the single amount paid for all the assets.
Given that the market values are in the ratio of
64,000:208,000:48,000 for land, building and equipment respectively. This is equivalent to ratios 4:13:3.
Hence, where the total amount paid is $290,000, cost apportionment
Land
= 4/20 × $290,000
= $58,000
Building
= 13/20 × $290,000
= $188,500
Equipment
= 3/20 × $290,000
= $43,500
When an asset is purchased with a note payable signed, the asset is debited and the note payable is credited.
<h3><u>Answer;</u></h3>
B. both total assets and total liabilities and owner’s equity.
<h3><u>Explanation;</u> </h3>
A double-ruled line should be drawn under the amount for both total assets and total liabilities and owner’s equity.
A single ruled line should be drawn on the column line above the amount for total assets, total liabilities and total liabilities and owner' equity.
For a given date, the Balance sheet shows the; total assets, total liabilities and owner's equities. That is, the Balance sheet shows end-of-period balances in the firm's Assets, Liabilities, and Owners Equity accounts
A) get money from other sources
Answer:
The correct answer is (A)
Explanation:
The cost which is directly associated with converting materials into a finished product is known as direct labour cost. The cost of wages paid to employees is the direct cost involved in the manufacturing process. In other words, a cost that is directly involved in the production of goods and services is the direct cost, for example, direct cost, direct commission, direct material cost.
Answer:
Increase by $500 m
Increase by $250 m instead of $500 m
Explanation:
Since all the deposits over and above the reserve requirements are loaned out by the banks,
We can calculate the Credit multiplier and see how a new 50 m deposit will affect the money supply.
Credit multiplier @ 10% reserve = 1 / 0.10 = 10 times
So a new deposit of 50 m will create new money of 10 * 50 = 500 m thus increasing the money supply by this amount.
For a 20% reserve ratio, Credit multiplier changes a,
Credit Multiplier = 1 / 0.2 = 5 times
This will change the money supply by = 5 * 50 = 250 m. This is the amount of new money that will be created with reserve ratio of 20%.
Hope that helps.