Answer:
Dec. 2.
Dr. Inventory $4,000
Cr. Troy $4,000
Dec. 3.
Dr. Rent Expense $2,600
Cr. Cash $2,600
Dec. 5.
Dr. Office Supplies $450
Cr. Rigby Supply $450
Dec. 8.
Dr. Utility Expense $590
Cr. Cash $590
Dec. 9.
Dr. Equipment $6,500
Cr. Alright Equipment $6,500
Dec. 10.
Dr. Alright Equipment $6,500
Cr. Equipment $6,500
Dec. 11.
Dr. Troy $4,000
Cr. Discount received $40
Cr. Cash $3,960
Explanation:
Dec. 11
The terms 1/10 n/30 mean there is a discount of 1% available on the payment to be made in 10 days of the purchase. The net credit period is 30 days. As the payment is made within the discount period, hence the payment will be made net of discount.
Discount on Purchase = $4,000 x 1% = $40
Payment = Total amount due - Discount = $4,000 -$40 = $3,960
Answer: A - nominal wages are slow to adjust to changing economic conditions
Explanation:
In the short run, the costs of many of the factors used in the production process are fixed. For example labours wage is fixed for a number of years because of labour contracts. Also the raw materials used in the production process have long term agreements that fix their prices.
As a result of factors of production been fixed in the short run, when general price level rises and the cost of production remains constant, profit also rises.
Firms take advantage of this rise in price and increase production and the quantity of aggregate supply increases. This is why the short run aggregate supply curve is upward sloping.
Answer: $387.23
Explanation:
Given that,
Borrowed from bank, P = $50,000
Annual interest rate, r = 8% = 0.08
Monthly rate of interest = 
= 0.0067
Tenure(period), n = 25 years = 25 × 12
= 300 months
![Monthly\ Installments=\frac{P\times r\times (1+r)^{n}}{[(1+r)^{n}-1]}](https://tex.z-dn.net/?f=Monthly%5C%20Installments%3D%5Cfrac%7BP%5Ctimes%20r%5Ctimes%20%281%2Br%29%5E%7Bn%7D%7D%7B%5B%281%2Br%29%5E%7Bn%7D-1%5D%7D)
![Monthly\ Installments=\frac{50,000\times 0.0067\times (1+0.0067)^{300}}{[(1+0.0067)^{300}-1]}](https://tex.z-dn.net/?f=Monthly%5C%20Installments%3D%5Cfrac%7B50%2C000%5Ctimes%200.0067%5Ctimes%20%281%2B0.0067%29%5E%7B300%7D%7D%7B%5B%281%2B0.0067%29%5E%7B300%7D-1%5D%7D)
= 387.23
Therefore, the required monthly payment is $387.23
Answer:
$298,206
Explanation:
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor + salvage value - initial investment
where,
The Initial investment is $1,500,000
All yearly cash flows would be
= Annual net operating cash inflows × PVIFA for 20 years at 17%
= $319,522 × 5.6278
= $1,798,206
Refer to the PVIFA table
Now put these values to the above formula
So, the value would equal to
= $1,798,206 - $1,500,000
= $298,206
