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Salsk061 [2.6K]
3 years ago
6

Clem Corporation issues 1,000 shares of common stock for $25,000. Clem purchased equipment for $10,000 by borrowing from the ban

k. Clem's total assets are_________.
Business
1 answer:
Marina86 [1]3 years ago
3 0

Answer:

$35,000

Explanation:

We know that

Total assets = Total liabilities + stockholder equity

And, The common stock shares are issued for $25,000 and plus equipment is also purchased via borrowing from the bank for $10,000

So, the total assets by applying the accounting equation is

= Issuance of the common stock + Bank borrowed amount

= $25,000 + $10,000

= $35,000

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The discount rate is the interest rates on loans that the Federal Reserves makes banks. Banks occasionally borrow from the Feder
tigry1 [53]

Answer:

The higher discount rate lower the banks incentive to borrow from the Fed, lowering the quantity of reserves, and causing the money supply to fall.

This is because a higher discount rate makes borrowing from the Fed more expensive. Some of the money that would have been borrowed from the fed becomes bank reserves, and some other becomes loanable funds that increase the money supply. As a result, if banks borrow less from the fed, the money supply falls (or grow less).

The Fed Funds rate is the rate that banks charge one another for short-term overnight loans.

This occurs when banks are stripped of cash, and rely on other banks to meet their cash requirements for the day.

When the Fed buys government bonds, the reserves in the banking system increases, the banks demand for the reserves decreases, and the federal funds rate falls.

When the Fed buys government bonds, it is essentially creating money. This money enters the banking system in the form of reserves, of which some are loaned out, creating even money. Demand for the borrowed reserves falls because banks now need less of it, and as a result, their price: the federal funds rate, also falls.

Explanation:

8 0
3 years ago
Q.2Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life by the double-declining-
melisa1 [442]

Answer:

A loss of $1400

Explanation:

The double-declining method uses twice the straight-line depreciation method rate in calculating the depreciation amount.

The asset has a useful life of 5 years. The straight-line depreciation rate = 1/5 x 100

=20%.

The double-declining rate will be 40%

The depreciation schedule for two years will be as follows.

Open. Bal Dep. rate Dep. Amount  Book value

$27,500  40%  $11,000   $16,500.00

$16,500  40%  $6,600             $9,900.00

The equipment was sold for $8,500

net gain or loss will be the selling price - book value

=$8,500 - $9,900

=- $1,400

A loss of $1400

8 0
3 years ago
With regard to New United Motor Manufacturing, Inc. (NUMMI), why did General Motors (GM) enter into a strategic alliance with To
hjlf

Answer:

to learn the lean manufacturing system pioneered by Toyota

Explanation:

The main reason for this strategic alliance was in order for General Motors to learn the lean manufacturing system pioneered by Toyota. The lean manufacturing system is a methodology derived from Toyota's 1930 operating model "The Toyota Way" which focuses on minimizing waste within manufacturing systems while at the same time being able to maximize productivity. This provides a great benefit to any manufacturing company, hence why General Motors was interested.

8 0
3 years ago
Everything else equal, an asset's value is:
Harrizon [31]

Answer:

The correct option is A, an asset's value is inversely related to the rate of return investors require to purchase it

Explanation:

The asset value is the initial purchase price determined by discounting the future cash flows from the asset to present values using a the required rate of return.

Ultimately, the higher the required return, the lower the present value of the investment whose price is being determined and the lower the discount the rate of return used in discounting relevant cash flows to present values the higher the present values.

7 0
2 years ago
Birk Co. uses a job order cost system. The following debits (credits) appeared in Birk's work-in-process account for the month o
svp [43]

Answer:

The amount of direct materials charged to Job No. 5 is $5,200.

Explanation:

Work in process, April 30 = Balance + Direct material + Direct labor + Factory overhead - Cost of finished goods

                                            = $4,000 + 24,000 + 16,000 + 12,800 - 48,000

                                             = $8,800

Job No 5 = Work in process, April 30 = $8,800

Job No 5 = Direct material + Direct labor + Factory overhead

$8,800 = Direct material + $2,000 + $1,600 ($2,000 * 80%)

Direct material = $8,800 - $2,000 - $1,600

                         = $5,200

Therefore, The amount of direct materials charged to Job No. 5 is $5,200.

5 0
2 years ago
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