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3 years ago

Suppose a bank gets a new deposit of $100 cash and it has a 20% required reserve ratio. If

Business

1 answer:

JulijaS [17]3 years ago

4 0

Answer:

C) $500

Explanation:

First we must determine the money multiplier = 1 / reserve ratio:

money multiplier = 1 / 20% = 5

The bank's checkable deposits originally increase by $100, and since it will be able to lend all the money it can, $80, its checkable deposits will also increase by $80 x 5 (money multiplier) = $400.

So the total increase in the bank's checkable deposits = $100 (original deposit) + $400 (money created through loans) = $500

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On April 12, Hong Company agrees to accept a 60-day, 10%, $9,000 note from Indigo Company to extend the due date on an overdue a

emmainna [20.7K]

Answer:

The journal entry to be recorded for the payment of the note on date of maturity is shown below:

Explanation:

The journal entry to be recorded for the payment of the note on date of maturity is as follows:

Notes Payable A/c..........................Dr $9,000

Interest expense A/c......................Dr $148

Cash A/c..........................................Cr $9,148

Being payment of the note payable is reported on the maturity date

As on the day of the payment, the cash is going out of the business which means assets is decreasing and any decrease in assets is credited. Therefore, the cash account is credited. And the notes payable is paid so the notes payable account is debited and interest expense account will also be debited.

Working Note:

Interest expense = $9,000 × 10% × 60/ 365

Interest expense = $148

3 0

3 years ago

Xyz company is a low-cost provider. xyz is most susceptible to

Alex777 [14]

Xyz company is a low-cost provider. Xyz is most susceptible to ANY NEW INNOVATIONS OR INVENTIONS FROM A COMPETITOR COMPANIES.
Low cost strategy is one of the three generic marketing strategies. It is a pricing strategy in which a service provider or a company reduces the cost to increase profit and demand.

5 0

3 years ago

Vast creative specialises in styling and art direction in the advertising industry.the management of vc wants to change the stru

babunello [35]

Explanation:

Resistance to change occurs when there is some kind of change in the organization, such as changes in the structure of the business, changes in teams, technologies, etc.

This is because there is insecurity in employees, often due to lack of sufficient information about the change and fear of not being able to adapt.

To eliminate employee resistance, company managers must communicate how the change will occur and why it is necessary, listing the positives of the changes and the benefits it will bring to the organization, enabling feedback so that employees feel included and their perception be positive.

5 0

3 years ago

Generally when do glaciers advance downward, causing further erosional landforms? throughout the entire year during colder seaso

melamori03 [73]

Generally, it is during the colder seasons that glaciers tend to advance downward, causing further erosional landforms. Items below are facts regarding Glaciers according from the National Oceanic and Atmospheric Administration (NOAA) who studies the skies and the oceans:

1. Approximately 10 percent of Earth's land is covered with glaciers.

2. Glaciers covered 32 percent of land during the last Ice Age.

3. Glaciers store about 75 percent of the world's fresh water.

4. Antarctic ice is more than 2.6 miles approximately 4,200 meters thick in some areas.

5. If all land ice melted, sea level would rise approximately 230 feet (70 meters) worldwide.

4 0

3 years ago

Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Stevens of $176,130.

denpristay [2]

Answer:

$45,440.00

Explanation:

Jack's interest on capital =5%*$90,000=$4,500.00

Stevens' interest on capital =5%*$111,000=$ 5,550.00

Net income left to be shared in ratio 1:2 is the net income of $309,000 minus the total interest on capital of $10,050 i.e $4,500+$5,550 and salaries to Stevens

Net income left for sharing=$309,000-$10,050-$176,130=$ 122,820.00

Jack's share of profit=1/3*$ 122,820.00 =$ 40,940.00

Stevens' share of profits=2/3*$122,820.00 =$ 81,880.00

Amount distributed to Jack=$4,500+$ 40,940=$45,440.00

6 0

3 years ago