Answer
Debit Accounts receivable $4,200
Credit Revenue account $3,870.97
Credit State Sales tax payable $232.26
Credit local Sales tax payable $96.77
Explanation:
When revenue is earned but cash is yet to be received and sales tax are to be accounted for at 8.5%, the entries required are;
Debit Accounts receivable 108.5%
Credit Revenue account 100%
Credit Sales tax payable 8.5%
Given that the sales tax amount is in addition to the credit sale amount, let the sales revenue be R
6% * R + 2.5% * R + R = $4,200
1.085R = $4200
R = $3870.97
States tax = 6% * $3870.97
=$232.26
Local tax = 2.5% * $3870.97
= $96.77
M1 is the most liquid monetary aggregate.
A measure of the money supply in an economy is called an aggregate of money. To standardized monetary aggregates in the US, the following labels are applied:
MO The monetary base, usually referred to as the physical money supply or coinage and bank reserves maintained by the central bank,
M1: M0 in its whole plus traveler's checks and demand deposits
All of M1, money market securities, and savings accounts are considered M2.
Despite not being frequently noticed and being distinct from the money supply, the monetary base is a crucial monetary aggregates. The total amount of money in circulation as well as the fraction of commercial bank reserves that is kept on hand by the central bank are included. Since it may be multiplied using the fractional reserve banking system, this is also sometimes referred to as high-powered money (HPM).
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Answer:
Money supply increase=500000/10%=5000000
Explanation:
Answer: Gross pay- $1750.00
Net pay - $1,215.75
Explanation: Gross pay = Nomal time =$28*40= $1,120. Overtime = $28*1.5*15= $630 Total= $1,750
Net pay = $1,750 less Security tax, Medicare tax, federal income tax withheld.
$1750* 6.0%= $105
$1750* 1.5% = $26.25
Tax withheld= $403
Net pay= $1,750-$105-$26.25-$403
= $1,215.75
