Answer:
-equal to zero
Explanation:
As the price for wood is above the demand is willing to pay there is no trade.
Either some of the participants will increase their demand and accept the price of 60 dollars; look for another supplier or look into producing for themselves
Also, Timber could lower the prce of wood so trade occurs.
Answer:
A transaction that involves the investment of cash in a business is debited because
1) For a business to invest cash for their expansion, involves the reduction of finances in the available revenue or profit for the purchase of equipment, property and software for internal use, for which money has to be drawn, which is a form of b=debit
2) For an owner investing money into his business, is taken as an increase in the amount the business owes the owner, which is equivalent to amount owed the owner which has to be recorded as a debit for financial accounting
Explanation:
Answer: $32000
Explanation:
The required reserves will be calculated as:
= Checkable deposit × Legal reserve ratio
= $80000 × 20%
= $16000
Excess reserves = $16000
Actual reserves will now be:
= Required reserves + Excess reserves
= $16,000 + $16,000
= $32,000
Answer:
Lundholm, Inc
Journal Entries
Date Account Titles Debit Credit
May 1, 18 Cash $500,000
Bonds payable $500,000
(To record the bond issuance)
31 Oct, 18 Interest Expenses $22,500
(500000*9%*6/12)
Cash $22,500
(To record payment of the first semiannual period’s interest)
Nov 1, 19 Bonds payable $300,000
Loss on Bonds $3,000
Cash $303,000
(To record retirement the bonds at 101 on November 1, 2019)
