Answer:
c. Dec. 31Fees Earned750 Rent Revenue175 Income Summary925
Explanation:
The journal entry to record the closing of Fees earned and rent revenue is given below:
On Dec 31
Fees earned $750
Rent revenue $175
To Income summary $925
(Being the revenues and fees earned is closed)
For recording this we debited the fees earned and rent revenue and credited the income summary so that the correct recording and posting could be done
Therefore the total amount of $925 is credited to income summary
Answer:
Explanation:
• Initially, As a result of the bond purchase, money supply will increase by $100000.
The reason for the increase in money supply by $100000 is because the federal reserve bought bond of $100000 from Riggie Rich. This is an expansionary policy which will lead to more money in supply.
• As a result of Rich's deposits, the bank will able to give $90000 more in additional loans.
The increase in the additional loans will be calculated by removing the reserve required ratio from the deposit.
= $100000 - (10% × $100000)
= $100000 - $10000
= $90000
• As a result of the purchase by the Federal reserve, the maximum increase in quantity of checkable deposits which could result throughtout the entire banking system will be $1000000.
The increase in checkable deposits will be the change in reserve multiplied by 1/RRR. This will be:
= $100000 x 1/10%
= $100000 × 1/0.1
= $100000 x 10
= $1000000
Answer:
$2,115
Explanation:
Lexington Company's Year 2 net cash flow from financing activities = cash received from issuing stocks minus bank loan payments - distributed dividends
net cash flow from financing activities = $1,250 (from additional stock) - $1,825 (bank payments) - $1,540 (dividends paid) = $2,115
Answer:
a. Carol's transfer price is $6 per meal if she only recovers the variable costs.
b. $13,5 per meal
c. $27000 or a loss of $1.5 per meal.
d. The cost of the cafeteria should be charged to the user departments so that the actual profit or loss from each department can be valued
Explanation:
a. Variable costs = $108000 for 18000 meals.
Variable cost per meal = 108000 / 18000 = $6
Carol's transfer price is $6 per meal if she only recovers the variable costs.
b. If carol were to recover the full cost then the transfer price = Total cost / no. of meals
= (108000 + 135000) / 18000 = $13,5 per meal
c. If the transfer price is the market price i.e $12, the loss from the cafeteria = Revenue from meals - Total cost
= (18000 x 12) - (108000 + 135000)
= $27000 or a loss of $1.5 per meal.
d. The cost of the cafeteria should be charged to the user departments so that the actual profit or loss from each department can be valued.
This information is useful to the hospital management in knowing the actual costs of the meals consumed in the various departments and how the cost cutting measures can be implemented based on the cost of the different departments.
Answer:
Martina as her agent can give certain advice like if the property is priced right the size of the property, negotiating with the seller or conducting inspection of the property.
However, on legal matters such as how the title should be held or taken, Martina should excuse herself and refer Christina to her lawyer for advise as real estate agents are not licensed to provide legal advice meaning they cannot answer a legal question, even if they know the answer, without breaking the law.
Explanation:
