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solong [7]
3 years ago
10

On January 1, Year 1, Stratton Company borrowed $100,000 on a 10-year, 7% installment note payable. The terms of the note requir

e Stratton to pay 10 equal payments of $14,238 each December 31 for 10 years. The required general journal entry to record the first payment on the note on December 31, Year 1 is:
Business
1 answer:
hammer [34]3 years ago
3 0

Answer:

Dr interest expense $7,000

Dr notes payable $7,238

Cr cash                                     $14,238    

Explanation:

The first task is to compute interest expense on the loan in year 1 which is shown below:

interest expense=$100,000*7%

interest expense=$7,000

Principal repayment=repayment-interest repayment

Principal repayment=$14,238-$7,000=$7,238

The double entries are to debit interest expense and notes payable with $7,000 and $7,238 respectively while cash is credited with $14,238 as an outflow of cash.

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Japan has the ability to produce either 10,000 televisions or 5,000 cars in a day. The United States has the ability to produce
lisabon 2012 [21]

Answer:

<h2>The United States has the comparative advantage in car production.</h2>

Explanation:

  • Japan has a lower opportunity cost of producing televisions compared to cars, implying that Japan basically has to give up or sacrifice or trade off relatively less number of cars to produce one more television compared to the production of one more car.
  • Alternatively, US has a lower opportunity cost of producing cars relative to televisions meaning that US has to give up, sacrifice or trade off less number of televisions to manufacture one more car in comparison to the production of one more television.
  • Hence, in this case,US has a comparative advantage in the production of cars and Japan has a comparative advantage in production of television and both countries can produce these respective commodities by using relatively less productive resources or factor inputs.
8 0
3 years ago
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics
jeka57 [31]

Answer:

The correct answers are:

A) The effects of the Internet on the pricing of used cars.  (Microeconomics)

B) The effect of government regulation on a monopolist's production decisions . (Microeconomics)

C) The effects of government tax policy on long-term economic growth. (Macroeconomics)

Explanation:

The field of economics is usually broken down into two broad categories: Microeconomics and Macroeconomics. The goal of all economics is to analyze the production and consumption of finite resources like oil, wheat, capital or even labor. Microeconomics observes these issues from an individual or business perspective. Macroeconomics looks at the issues from the perspective of the country as a whole, and the policies affecting the economy. Thus:

A) The effects of the Internet on the pricing of used cars. (Microeconomics)

B) The effect of government regulation on a monopolist's production decisions. (Microeconomics)

C) The effects of government tax policy on long-term economic growth (Macroeconomics)

3 0
3 years ago
Rachel receives employer-provided health insurance. The employer's cost of the health insurance is $5,600 annually. What is her
kati45 [8]

Answer:

$4,424

Explanation:

Calculation for her employer's after-tax cost of providing the health insurance

Using this formula

After-tax cost =Annually employer's cost of health insurance -(=Annually employer's cost of health insurance*Marginal tax rate)

Let plug in the formula

After-tax cost =$5,600- ($5,600 × 21%)

After-tax cost =$5,600- $1,176

After-tax cost =$4,424

Therefore her employer's after-tax cost of providing the health insurance is $4,424

8 0
2 years ago
You just hung up the phone after a 3-hour conference call with your colleagues in India. After the call, one of your co-workers
Llana [10]

Answer: Examine your expectations for conducting the meeting and determine how they might be different than your Indian colleagues.

Explanation:

Cross-cultural communication looks at how people from different cultural backgrounds communicate among themselves. The aim of cross-cultural communication is to bring together people with cultural differencces in such a way that the cultural differences shouldn't be a barrier.

Cross-cultural communication is understanding ways by which culturally distinct individuals relate and communicate with each other.

Regarding the question, the best way to improve one's cross cultural communication will be to examine the expectations one has for conducting the meeting and then determine how the expectations might be different from my Indian colleagues.

6 0
3 years ago
The PE ratio: Assuming Net Income for the year is $250,000, what is the net cash flows from operating activities given the follo
solmaris [256]

Answer:

Net operating cash flow = $189,250

Explanation:

Particulars                                    Amount$

Net income                                    250,000

Add:depreciation expense           9,500

Add:loss on sale of asset              1,250

Add:increase in salary payable    19,500

Less:increase in prepaid rent       (27,500)

Add:increase in AP                        29,500

Less:increase in inventory            <u>(93,000)</u>

Net operating cash flow              <u>$189,250</u>

4 0
2 years ago
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