Answer: 4) No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits
Explanation:
The money supply refers to the total amount of money currently in circulation. In this instance it remains the same because no new money was introduced into the economy.
All that has happened is that Ms. Rogers took her $200 which was already in circulation and part of money supply and deposited it in her checking account. The money is therefore still in circulation, just not in immediate cash.
Money supply therefore remains the same.
Answer:
The correct answer is A.
Explanation:
Low cost companies, such as Southwest, Horizon, Frontier and JetBlue, are already one of the first options when organizing a trip. Flying is easier and more accessible every day, partly thanks to the low prices that airlines offer us, but also more uncomfortable, so you may ask yourself: what tricks do airlines use to make flying so cheap now?
- Point to point routes. Low-cost companies do not offer transshipment services (network), so they save the cost of moving luggage from one plane to another and do not have to worry about the costs of connections between their routes.
- Staff costs. When operating point-to-point flights and only short and medium radius, low cost never pay hotels to their crews to spend the night outside the airport where they are destined. Pilots and cabin staff always return to their base. In addition, their salaries are usually lower than those of traditional airline personnel.
- Small airports. Operating in small airports and far from the main urban centers allows these airlines to avoid traffic jams, thus saving fuel and time.
- Homogeneous fleet. Low cost usually use modern fleets and similar models, allowing them significant savings in maintenance.
- Reduced services. These low-cost airlines do not serve meals, cut seat space and eliminate seat allocation, which saves a lot of time, but also money.
- Additional income. Most low-cost airlines promote a wide range of gifts and lotteries on board, which gives them significant extra income.
- It pays for everything. The reservation of tickets, billing at a counter and the right to carry a suitcase in the hold of the plane is paid with low-cost airlines.
- Less expenses at the airport. Many low cost even give up having customer service offices, replacing them with call centers that involve a high cost of calling.
- Public incentives. Many public administrations grant great economic aid to these low costs to prevent them from stopping to fly to their airports.
- Very high rotation. Companies basically care about two things: get the maximum number of flights and fill the planes to the maximum. A plane is only profitable when it is flying, so more flights, more profitability.
Since the actual process of the transaction is instantaneous, and its takes the money directly out of your account, the account they're dealing with is most likely Revenue.
Accounts Receivable is also another option that may come to mind, but remember that in this account, the seller is waiting for payment. Once the responsible party pays the seller, A/R is credited (decreased) and Revenue is debited (increased).
With iTunes (as stated previously), the transaction happens right then and there. We pay cash and iTunes gives us the song/movie/album/etc. Therefore, the only logical answer would be <u>Revenue</u>. In this case, <em>Sales Revenue</em> since we're dealing with a type of retailer and not a service.
Answer:
a. Interest Revenue
Identification: Asset
Increases with: Debit
Normal Balance: Debit
b. Accounts Payable
Identification: Liability
Increases with: Credit
Normal Balance: Credit
c. Calhoun, Capital
Identification: Equity
Increases with: Credit
Normal Balance: Credit
d. Office Supplies
Identification: Asset
Increases with: Debit
Normal Balance: Debit
e. Advertising Expense
Identification: Liability
Increases with: Credit
Normal Balance: Credit
f. Unearned Revenue
Identification: Liability
Increases with: Credit
Normal Balance: Credit
g. Prepaid Rent
Identification: Asset
Increases with: Debit
Normal Balance: Debit
h. Utilities Expense
Identification: Liability
Increases with: Credit
Normal Balance: Credit
i. Calhoun, Withdrawals
Identification: Equity
Increases with: Debit
Normal Balance: Debit
j. Service Revenue
Identification: Asset
Increases with: Debit
Normal Balance: Debit
Answer:
A) $21,068
B) $1,525.24
C) $280,457.24
Explanation:
The amount of the discount = face value - market value = $300,000 - $278,932 = $21,068
Amount of interest recognized on December 31, year 1 = ($278,932 x 7%) - ($300,000 x 6%) = $19,525.24 - $18,000 = $1,525.24
Carrying value of the bond liability = $278,932 + $1,525.24 = $280,457.24
