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3 years ago

NEED THIS ASAP

Business

1 answer:

GaryK [48]3 years ago

5 0

Answer:

When the economy reaches full real output, there is no spare capacity left and therefore as real output increases, the price level will increase. There are no workers left in the economy as full employment is reached.

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According to the theory of comparative advantage, potential world production is greater with unrestricted free trade than it is

dimaraw [331]

Answer:

The answer is true

Explanation:

The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.

8 0

3 years ago

Borrowed 152300 for three years if the qouted rate (apr) is 11.75% and the compounding is daily what is the effective annual rat

Vikki [24]

Answer:

The appropriate response is "12.47%".

Explanation:

The given values are:

Borrowed amount,

= 152300

APR,

= 11.75%

i.e.,

= 0.1175

Now,

The effective annual rate will be:

= $(\frac{1+APR}{n} )^n$

On substituting the given values, we get

= $(\frac{1+0.1175}{365} )^{365}$

= $(\frac{1.1175}{365} )^{365}$

= $1.12466-1$

= $0.1247 \ or \ 12.47 \ percent$

7 0

3 years ago

Utopia Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 3% of net cred

photoshop1234 [79]

Answer:

The answer is C.

Explanation:

Credit sales is $6,000

Bad debt is 3% of net credit sales which is $180($6,000 x3%)

Creating allowance for doubtful debt entry is one of the prudent method and it tells us that some customers won't pay part of what they are owing. And it is also a contra account that offset bad debt.

According to the accounting rule, debit increases asset and expenses and vice-versa while credit decreases liability, equity, income and vice versa.

So we have have:

Dr Bad debt expense $180

Cr Allowance for Doubtful Accounts $180

6 0

3 years ago

Which of the following is NOT a reason why an investor would choose to invest in new and growing firms as a limited partner in a

marshall27 [118]

Answer:

c. The investor will have a direct say in how the companies that the venture capital firm funds will be run

7 0

3 years ago

Read 2 more answers

Power Corporation acquired 100 percent ownership of Scrub Company on February 12, 20X9. At the date of acquisition, Scrub Compan

Rufina [12.5K]

Answer:

a. See the journal entries in the explanation below.

Retained Earnings is $175,000

Goodwill is $25,000

b. See the journal entries in the explanation below.

Retained Earnings is $175,000

Capital Reserve is $4,000

Explanation:

Note: There are mistakes the names of the companies in the requirements a anb b. These correctly restated before answering the question by as follows:

a. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $291,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the basic consolidation entry

2. Record the excess value (differential reclassification entry)

b. Prepare the following consolidation entries required to prepare a consolidated balance sheet immediately after the business combination assuming Power acquired its ownership of Scrub for $262,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the basic consolidation entry.

2. Record the excess value (differential) reclassification entry.

The answers and explanation are therefore given as follows:

a. Prepare the following consolidation entries required when Consideration is $291,000

1. Record the basic consolidation entry

Accounts Dr ($) Cr ($)

Common Stock 91,000

Retained Earnings (w.1) 175,000

Goodwill (w.2) 25,000

Investment in Scrub Company 291,000

(To record the elimination of investment and stockholder equity.)

2. Record the excess value (differential reclassification entry)

Note that $25,000 is transferred to Goodwill account in part 1 above.

The $25,000 is transferred to Goodwill because when the consideration is greater than the net asset value which is calculated as the of Common Stock and Retained Earnings, the difference is the Goodwill.

When Net Consideration is more than the net asset value (Stockholder Equity), then the difference is to be transferred to Goodwill.

Workings:

w.1: Calculation of retained earning to be eliminated

Particulars $

Retained Earnings Balance 160,000

Increase in land value 21,000

Decrease in inventories values (6,000)

Fair Value retained earnings to be eliminated 175,000

w.2: Calculation of Goodwill to be recognized

Particulars $ $

Consideration paid for acquisition 291,000

Assets of Scrub:

Asset book value 420,000

Increase in land value 21,000

Decrease in inventories values (6,000)

Assets 435,000

Liabilities (169,000)

Net asset value of Scrub (266,000)

Goodwill to be recognized 25,000

b. Prepare the following consolidation entries required when Consideration is $262,000

1. Record the basic consolidation entry

Accounts Dr ($) Cr ($)

Common Stock 91,000

Retained Earnings (w.3) 175,000

Investment in Scrub Company 262,000

Capital reserve (w.4) 4,000

(To record the elimination of investment and stockholder equity.)

2. Record the excess value (differential reclassification entry)

Note that $4,000 is transferred to Capital Reserve in part 1 above.

The $4,000 is transferred to Capital Rserve because when the consideration is less than the net asset value which is calculated as the of Common Stock and Retained Earnings, the difference is Capital Reserve.

When Net Consideration is less than the net asset value (Stockholder Equity), then the difference is to be transferred to Capital reserve.

Workings:

w.3: Calculation of retained earning to be eliminated

Particulars $

Retained Earnings Balance 160,000

Increase in land value 21,000

Decrease in inventories values (6,000)

Fair Value retained earnings to be eliminated 175,000

w.4: Calculation of Goodwill to be recognized

Particulars $ $

Consideration paid for acquisition 262,000

Assets of Scrub:

Asset book value 420,000

Increase in land value 21,000

Decrease in inventories values (6,000)

Assets 435,000

Liabilities (169,000)

Net asset value of Scrub (266,000)

Capital reserve to be recognized  (4,000) 

3 0

3 years ago