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3 years ago

Assets Liabilities and Net Worth

Business

1 answer:

MatroZZZ [7]3 years ago

6 0

Answer: c. $6,000.

Explanation:

Given: Checkable Deposits = $130,000

Amount Withdrawal = $10,000

Then, the new checkable deposit = (Checkable Deposits) - (Amount Withdrawal)

= $130,000-$10,000= $120,000

Reserves = 20% × (new checkable deposit)

=20% × $120,000 = $24,000

New reserve = (Reserve)-(Amount Withdrawal)

=$40,000 - $10,000 = $30,000

Excess Reserve = (New reserve) - (Reserves )

= $30,000 – $24,000 = $6,000

i.e. Excess reserve in bank is $6,000.

Hence, the correct answer is c. $6,000.

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3 years ago

Read 2 more answers

On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurre

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Answer:

Assets = $ 55650

Liability =8300

Owner's equity=47350

Liability and Owner's equity.=8300 +47350=$55650

Explanation:

Using The basic equation we add the transaction to arrive at the actual amounts.

Assets = Liabilities + Owner's Equity

1. 50,000= 50,000

Cash +Assets = Liabilities + Owner's Equity

2. 35,800 +14,200= 50,000

Cash +Assets = Liabilities + Owner's Equity- Rent Expense

3) 33600+ 14200 = 50,000 - 2,200

Cash +Canoes = Liabilities + Owner's Equity- Rent Expense

4) 33600+ 14200+ 4900= 4900 + 50,000 - 2,200

Cash +Canoes = Liabilities + Owner's Equity- Rent Expense

5) 33600+ 19,100 + 3,400= 4900+ 3400 + 50,000 - 2,200

Cash +Canoes + Office Equip = Liabilities + Owner's Equity- Rent Expense

6) 33225+22500+ 375= 8,300 + 50,000 - 2,200

Cash +Canoes + Office Equip+ A/ R = Liabilities + Owner's Equity- Rent Expense

7) 33225+22500+ 375+ 1350 = 8,300 + 50,000 - 2,200+ 1350

Cash +Canoes + Office Equip+ A/ R = Liabilities + Owner's Equity- Rent Expense- drawings

8) 31425+22500+ 375+ 1350 = 8,300 + 50,000 - 2,200+ 1350-1800

We get

Cash = 31425

Kayak And Canoe 22500

Office Equipment= 375

Accounts Receivable= 1350

Accounts Payable = 8300

Capital less Drawings= 50,000- 1800= 48,200(850)= 47350

Revenue- Expenses = 1350 -2200= (850)

Assets = Cash +Kayak And Canoe +Office Equipment+ Accounts Receivable = 31425 +22500 + 375 +1350= $ 55650

Liability =8300

Owner's equity=47350

Liability and Owner's equity.=8300 +47350=$55650

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3 years ago

In your own words....

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Answer:

Explanation:

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3 years ago

On January 1, 2018, Brussels Enterprises issues bonds at par dated January 1, 2018, that have a $3,400,000 par value, mature in

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Answer:

a. Record the entry for the issuance of bonds for cash on January 1, 2018.

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Dr Interest expense 153,000

Cr Cash 153,000

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Dr Bonds payable 3,400,000

Cr Cash 3,400,000

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3 years ago

The Investments Fund sells Class A shares with a front-end load of 5% and Class B shares with 12b-1 fees of 0.75% annually as we

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Answer:

The responses to the given choices can be defined as follows:

Explanation:

Assume is the investment. Each original Class A investment is of the net-front unburden. The portfolio will be worth four years from now:

$\$1,000 \times 5\% = \$50 =\$1,000 - \$50 = \$950\\\\ \$950 (1 + 0.13)^4 = \$950 (1.13)^4 = \$950 (1.630474) = \$1,548.95\\\\$

You will place the total of $\$1,000$ on class B shares, but only $12b-1$ will be paid $(13-0.75 = 12.25)$ at a rate of $12.25\%$ and you'll pay a $1\%$ back-end load charge if you sell for a four-year period.

After 4 years, your portfolio worth would be:

$\$1,000 (1 + 0.1225)^4 = \$1,437.66 \\\\ \$1,000 (1.1225)^4 = \$1000 (1.587616) = \$ 1,587.62$

Their portfolio worth would be: after charging the backend load fee:

$\$1,587.616 \times 0.99 = \$1,571.74 \\\\ Amounts \\\\ Class A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,548.95\\\\ Class B \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1,571.74 \\\\$

When the horizon is four years, class B shares are also the best option.

Class A shares would value from a 12-year time frame:

$\$950 (1.13)^{12} = \$950 (4.334523) = \$4,117.80 \\\\$

In this case, no back-end load is required for Class B securities as the horizon is larger than 5 years.

Its value of the class B shares, therefore, is as follows:

$\$1,000 (1.1225) 12 = \$1,000 (4.001623) = \$4,001.62 \\\\Amounts \\\\\ Class A \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,117.80\\\\ Class B \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 4,001.62\\\\$

Class B shares aren't any longer a valid option in this, prolonged duration. Its impact on class B fees of $0.75\%\ \ 12b-1$ cumulates over a period and eventually outweighs the $5\%$ the burden of class A shareholders.

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3 years ago