The general journal entry made by First Rentals on purchase of office supplies on credit will include a Credit to Accounts Payable.
<h3>How are office supplies on credit recorded?</h3>
Office supplies on credit means office supplies bought on credit by the firm.
In conclusion, the general journal entry made by First Rentals on purchase of office supplies on credit will include a Credit to Accounts Payable.
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Answer:
Nexium & Associates Journal entries
March 1
Dr Accounts Receivable800
Cr Service Revenue 800
March 9
Dr Office Furniture1,060
Cr Office Supplies 160
Cr Accounts Payable1,220
March 15
Dr Accounts Payable1,220
Cr Cash1,220
March 23
Dr Electricity Expense430
Cr Accounts Payable430
March 31
Dr Salaries Expense850
Cr Cash850
Explanation:
The details given about Nexium & Associates are straight forward and required no further
adjustment.
Answer:
b. the interest rate falls, which causes the opportunity cost of holding money to fall.
Explanation:
the demand for money (the declension to hold money) is inversely related to interest rate. if interest rate is high, individuals would prefer to hold bonds and the demand for money would fall. if interest rate is low, individuals would prefer to hold money.
the opportunity cost of holding money is what would have been earned if money was invested. if interest rate is low, individuals would prefer to hold more money because the amount that would be earned if money was invested in bonds would be low, so the opportunity cost of holding money would be low
Answer:
$1012.50 ( dollar coupon interest paid at the end of 6 months )
Explanation:
par value ( initial value ) of TIPS = $100000 ( PO)
coupon rate = 2% ( r )
Annual inflation rate = 2.5% ( R )
semi-annual inflation rate = 1.25%
A) what is the dollar coupon interest paid after 6 months
= inflation adjusted principal after 6 months * r / 2 equation 1
inflation adjusted principal after 6 months( P1 ) = PO * ( 1 + R /2 ) equation 2
= 100000 * ( 1 + 1.25% ) = 100000 * 1.0125=$101250
therefore back to equation 1
P1 * 0.02 / 2 = 101250 * 0.01 = $1012.50 ( dollar coupon interest paid after 6 months )
