Answer:
1. e. The Fed buys a security from a bank for $1,000.
In order to increase money supply, the Fed buys a security from the bank and gives them money.
2. d. The bank sets $100 aside as required reserves.
The bank will set aside 10% of the money paid by the Fed which comes to $100 leaving the bank with $900.
3. a. The bank lends $900 to a customer needing a loan.
The bank then lends this money to customer who needed it.
4. c. The customer spends the $900 at a store.
The customer then spends the money thereby transferring it to another party.
5. b. The store owner deposits the $900 in another bank.
The store owner then takes the money spent by the customer and deposits it in another bank. That bank then gives the Fed 10% and then the cycle repeats.
<span>The Federal Reserve is not a credit reporting agency. It is the main banking system in America, created in the 1910s. Credit reporting agencies work with banks such as the Federal Reserve to help the bank - or another type of business - decide whether a person they lend money to will be able to pay it back.</span>
Answer:
Full oartnerships
Explanation:
Spacelace is a company that provides plumbing solutions to luxury hotels and resorts. It enters into contracts with multinational builders to take up all of their construction projects. The company has a customer support team that can work out of clients' offices when requirements arise. In the context of customer relationship management, Spacelace most likely establishes full oartnerships with its customers.
A partnership is a business arrangement by two or more parties to manage and operate a business and share its profits. A full Partnership Relationship is one that has a lasting connection between the customers and company. In the case of Spacelace they have established a lasting relationship with their customers.
Answer: The adjusting entry would be: Debit Bad debt expense $24,380; Credit Allowance for doubtful accounts $24,380.
Explanation: Since aging of the accounts receivable shows that 7% approximately of the outstanding receivable of $374,000 will be uncollectible. It then means $26,180 (7%*$374,000) will be uncollectible. Meanwhile, Tanning Company already has a credit balance of $1,800 in the allowance for doubtful accounts, therefore, an adjustment of $24,380 ($$2,180 - $1,800) has to be made.
Answer:
Net income is $135,000
Explanation:
The below is the Paradise Travel Service Income Statement For the Year Ended May 31, 20Y6 .
Fees earned $900,000
less:
Office expense $300,000
miscellaneous expense $15,000
wages expense <u>$450,000</u>
Total expense for the year ($765,000)
Net income $135,000
The net income is computed by deducting office,miscellaneous and wages expenses from the total fees earned during the year,hence the resulting net income thereafter is $135,000.
The net income would be added to opening balance of retained earnings in order to compute the closing retained earnings for the year
