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Scrat [10]
3 years ago
14

Which document establishes an initial record of the receipt of the inventory? petty cash voucher purchase order vendor's invoice

receiving report?
Business
1 answer:
Sladkaya [172]3 years ago
8 0

Answer:

The answer is receiving report.

Explanation:

Receiving report shows that the product ordered has been received by the purchaser from the vendor. Vendor’s invoice usually come after the receiving report and generally would be sent following that document, either separately or together. Purchase order would come before receiving report as an initial agreement to purchase a number of products from a vendor. Petty case vouchers are not related to external transactions with a vendor, but are instead used for internal-related business transactions.

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Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserv
lesantik [10]

Answer:

a) Assets: Reserves $200,000; Liabilities: Deposits $200,000

b) Amount Deposited: $2000,000; Change in Excess Reserves: $190,000; and Change in Required Reserves: $10,000

c) See the calculation below and the attached excel file for the table.

d) the $200,000 injection into the money supply results in an overall increase of <u>$4,000,000 </u>in demand deposits.

Explanation:

These can be answered as follows:

a) Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans).

Note: See the attached excel file for the table.

The $200,000 deposited by Lorenzo to First Main Street Bank led to the creation of both an asset and a liability for First Main Street Bank.

As a result, the reserve of the bank is increased by $200,000 on the asset side of the T-account. It is therefore now possible for the ban to grant loan to other customers from these additional reserves.

In addition, the demand deposit of the bank is increased by $200,000 on the liability side of the T-account. This is recorded as a demand deposit because it is possible for Lorenzo to come at any time to the band to withdraw his deposit either by using a debit card or by writing a check.

b) Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 5%. Hint: If the change is negative, be sure to enter the value as negative number.

Note: See the attached excel file for the table. Just scroll the excel file down to part b.

The required reserve ratio of 5% indicates that First Main Street Bank has to hold 5% of the $200,000 the deposit or fresh fresh reserves, and this will result in having a 95% excess reserve which the bank can employ to grant loans.

From the amount deposited, the change in excess reserve and the change in the required reserve can be computed as follows:

Amount deposited = $200,000

Change in excess reserve = $200,000 * (1 - 5%) = $190,000

Change in required reserve = $200,000 * 5% = $10,000

c) Now, suppose First Main Street Bank loans out all of its new excess reserves to Juanita, who immediately uses the funds to write a check to Gilberto. Gilberto deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Lorenzo, who writes a check to Neha, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Teresa as well.Fill in the following table to show the effect of this ongoing chain of events at each bank. Enter each answer to the nearest dollar.

Note: See the attached excel file for the table. Just scroll the excel file down to part c.

As already computed in part b above, we have the following to show the effect of this ongoing chain of events at each bank, we have:

<u>For First Main Street Bank:</u>

Increase deposit = Deposit from Lorenzo = $200,000

increase in required reserve = $200,000 * 5% = $10,000

Increase in loans = Loan to Juanita = $200,000 * (1 - 5%) = $190,000

<u>For Second Republic Bank:</u>

Increase deposit = Deposit from Gilberto = $190,000

Increase in required reserve = $190,000 * 5% = $9,500

Increase in Loans = Loans to Lorenzo = $190,000 * (1 - 5%) = $180,500

<u>For Third Fidelity Bank:</u>

Increase deposit = Deposit from Neha = $180,500

Increase in required reserve = $180,500 * 5% = $9,025

Increase in Loans = Loans to Teresa = $180,500 * (1 - 5%) = $171,475

d) Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $200,000 injection into the money supply results in an overall increase of in demand deposits.

In order to calculate this, the formula for the money multiplier is used to multiply the initial deposit or injection of $200,000 by Lorenzo as follows:

Money multiplier = 1/r

Where r denotes required reserve ratio of 5%, or 0.05.

Therefore, we have:

Overall increase in demand deposits = Injection * (1 / r) = $200,000 * (1 / 0.05) = $200,000 * 20 = $4,000,000

Therefore, the $200,000 injection into the money supply results in an overall increase of <u>$4,000,000 </u>in demand deposits.

Download xlsx
8 0
3 years ago
On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market and purchase a six-month
Mice21 [21]

Answer:

The question is not complete:

On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market (¥104.91/$) and purchase a six-month forward contract ($0.0095320/¥1) to convert yen into dollars. How much will you receive in U.S. dollars at the end of six months? (Round your answer to 2 decimal places. (e.g., 32.16))

The sum of $650,001.38  would be received in six months

Explanation:

In the first place by buying the yen in the spot market on July 15 ,2016, the amount of yen is computed thus:

$650,000 was at (¥104.91/$) ,which implies that each $ was exchanged for ¥104.91

yen received =$650,000*104.91/1

                       = ¥ 68,191,500.00  

The six month forward contract outcome is as follows:

($0.0095320/¥1)

each Yen was exchanged $0.0095320

dollars received= ¥ 68,191,500.00 *0.0095320/1

                          =$650,001.38  

3 0
3 years ago
All of the following statements regarding accounting treatments for liabilities under U.S. GAAP and IFRS are true except:_______
mihalych1998 [28]

Answer:

A) Accounting for bonds and notes under US GAAP and IFRS is similar.

Explanation:

US GAAP and IFRS do not have the same accounting guideline for bond issue cost:

Under US GAAP, bonds payable is recorded at face value while premiums or discounts are recorded separately. While under IFRS, bonds payable is recorded using the carrying value, and amortization or premiums or discounts is done by using the effective-interest method.

5 0
3 years ago
In a process costing system, the number of units started and completed for a period is equal to: Multiple Choice Units transferr
riadik2000 [5.3K]

Answer:

Units transferred out less units in beginning work in process.

Explanation:

A process costing system is generally used when similar or identical products are mass produced.

To determine the total number of units transferred out = beginning work in process + units started and transferred out - ending work in process

To determine the amount of units started and completed = total units transferred out - beginning work in process

6 0
3 years ago
The cost of resources and using more efficient are two factors that affect the supply of a product
Art [367]

I DONT KNOW DUGHHH ONE TWO THREE OH IT NOT MATH ZOWWRY

6 0
3 years ago
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