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3 years ago

On a supply and demand graph, the line that indicates price is the.

1 answer:

3 0

On a supply and demand graph, the line that indicates price is the y-axis. The supply and demand graph has axis that contains price (y-axis) and quantity (x-axis). This graph play an important role in the study of economics. It will indicate how much to produce to meed demands and still gaining money or just to breakeven.

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Suppose that France and Austria both produce rye and wine. France's opportunity cost of producing a bottle of wine is 4 bushels

miv72 [106K]

Answer:

France has comparative advantage in production of wine

Austria has comparative advantage in production of rye.

4 bushels of rye for each bottle of wine

1 bottle of wine for each bushel.

b. 4 bushel of rye per bottle of wine.

Explanation:

France has comparative advantage in producing wine as it has opportunity cost of 4 bushels per bottle of wine. Austria has comparative advantage in producing bushels as it has opportunity cost of 10 bushels per bottle of wine. The both countries can gain advantage if they agree for 4 bushels per wine.

3 0

3 years ago

On January 1, 2020, Echo Company issued $550,000, 16 year, 9%, annual, callable bonds for $475,000. On December 31, 2025, Echo C

Gnom [1K]

Answer:

1. Prepare the Journal Entry to record the Issuance of the Bond

January 1, 2020, bonds issued at a discount

Dr Cash 475,000

Dr Discount on bonds payable 75,000

Cr Bonds payable 550,000

2. Determine the amount of the Discount/Premium that is still not amortized (using the Straight-Line Method)

total bond life = 16 years, 5 years have passed

amortization of bond discount per coupon payment = $75,000 / 16 = $4,687.50

so $51,562.50 have not been amortized yet

3. Prepare the Journal Entry to record the Retirement (Redemption) of the Bond.

Before being able to redeem the bonds, the remaining discount must be amortized:

December 31, 2025, amortization of bond discount

Dr Interest expense 51,562.50

Cr Discount on bonds payable 51,562.50

the journal entry to record the redemption of the bonds

December 31, 2025, bonds redeemed at a loss

Dr Bonds payable 550,000

Dr Loss on retirement of debt 11,000

Cr Cash 561,000

7 0

3 years ago

Point Company paid $4,000 cash to purchase a new machine. The company also paid $500 cash for an initial training cost that was

spin [16.1K]

Answer:

Dr Machinery $4500

Cr Cash $4500

Explanation:

The reason is that the Internation Accounting Standard IAS 16 Property, Plant & Equipment says that the company must capitalized all those costs that are necessary to make the asset ready to use which means that the cost of training which is $500 and purchasing cost which is $4000 must be capitalized as part of the asset.

So the entry would be:

Dr Machinery $4500

Cr Cash $4500

4 0

3 years ago

What does it mean when an economist says that a consumer has demand for a good or service?

FrozenT [24]

Demand means the consumers want the product or service. If there is a demand, companies must supply. "supply and demand"

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3 years ago

4:12 p.m. emma's mom will be home from work in 70 minutes, and emma has gymnastics lessons at 6:00 p.m. how much time will emma

Tanzania [10]

If emma's mother arrives in 70 minutes, it means that she will be home at 5:22 p.m. Then, as the gymnastics lessons begin at 6:00 p.m. means that Emma has 38 minutes between the time that her mom gets home from work and beginning of gymnastics lessons

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2 years ago