Answer:
A
Explanation:
When the Canadian dollar depreciates against the euro, the value of the Canadian dollar falls relative to the Euro.
For example, the exchange rate before the depreciation is 40 Canadian dollar / Euro. After the depreciation, it is 80 Canadian dollars / Euro.
Goods become more expensive for Canadian buyers of foreign goods. For example, a foreign good costs 160 Euros. Before the depreciation the good would cost (160 x 40) = 6400 Canadian dollars. After the depreciation, it would cost, 12,800 Canadian dollars.
Canadian sellers to foreign buyers don't benefit from the depreciation. Assume a local good costs 40 Canadian dollars. foreigners would pay 1 Euro for the good before depreciation. After depreciation, foreigners would pay 0.5 Euros for the good
Answer:
Explanation:
Journal entries:
Oct 1
Dr Cash 41,000
Cr Common stock 41,000
Oct 2
No entry
Oct 3
Dr Equipment 4,400
Cr Accounts payable 4,400
Oct 6
Dr Accounts receivable 13,000
Cr Sales 13,000
Oct 10
Dr Cash 170
Cr Service revenue 170
Oct 27
Dr Accounts Payable 880
Cr Cash 880
Oct 30
Dr Salaries expense 2,500
Cr Cash 2,500
Proportional tax is what we call the tax that is set
to be fixed, regardless of what an individual’s taxable base amount is. An example
of such a tax is sales tax, which remains the same for all income levels.
Answer and Explanation:
a. The Journal entry is shown below:-
Lawsuit loss Dr, $900,000
To Lawsuit liability $900,000
(Being lawsuit loss is recorded)
Here we debited the lawsuit loss as it increased the losses and we credited the lawsuit liability as it also increased the liabilities because the losses contains normal debit balance and the liability contains normal credit balance
b. No Journal entry is required as The loss is not accrued as it is not expected that a liability has been spent at Dec 31, 2020
