Answer:
266,2 units of capital per worker
Explanation:
The capital growth as stated is compound growth. Since technology and human capital are constant, there is not expected changed in productivity factors relationship, so the formula for compound growth, in this case, is: capital per worker in 3 years' time = capital per worker * (1+ annual rate growth) ^ 3. Computing numbers would be: capital per worker in 3 years' time = 200*(1+10)^3= 266,2
Answer:
b) a debit to the seller and credit to the buyer for $100
Explanation:
The portion of the utilities bill consumed by the seller is not to be borne by buyer Bill, he cannot be made to pay for what he did not consume, the correct treatment is for seller to bear the $100 consumed by him by way of the following entries
Debit The seller $100
Credit Buyer bill $100
This is in the spirit of fairness to both Buyer Bill and Seller.
Answer and Explanation:
The journal entry is shown below:
Cash Dr $98,800
Finance charge Dr ($120,000 × 1%) $1,200
To Liability - Financing Arrangement $100,000
(being receipts of cash is recorded)
Here cash and finance charge is debited as it increased the assets and expenses and liability is credited as it also increased the liabilities. Also, the cash & expenses contains normal debit balance and liabilities contains normal credit balance
