Reserve ratio is defined as the percentage amount of deposit that a bank is instructed by the governing central bank to keep as cash reserve. This is used to control the money supply in the economy as the the check - able amount that are subjected to withdrawal is limited to the funds available after the reserve ratio has been considered.

Workings

New deposit - $10,000

Required reserve ratio - 5%

No existing excess ratio as at the time of deposit.

Reserve ratio - 5%*10000 = 50

Increase in checking account = 1000-50

= $950

8 0

3 years ago

On May 10, 2020, Cullumber Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay t

Likurg_2 [28]

Answer:

Date Particular Debit Credit

May 10, 2020 No Entry (Note 1) $0 $0

(To record contact entered into)

June 15, 2020 Account Receivable A/c $1,810

To Sales Revenue A/c $1,810

(To record Sales)

June 15, 2020 Cost of goods sold A/c. $1,050

To Inventory A/c $1,050

(To record cost of goods sold)

July 15, 2020 Cash A/c $1,810

To Account Receivable A/c $1,810

(To record payment received)

8 0

3 years ago

Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5]Riverside Inc. ma

Lyrx [107]

Answer:

64% it's the contribution margin of the company.

Explanation:

To find the contribution margin we need to find the gross profit which is the total sales minus the variable cost of goods, te contribution margin doesn't include the fixed costs only the variable ones.

Income Statement

Quantities 400 600 750 1.000

Sales $148,000 $222,000 $277,500 $370,000

Cost of goods sold -$54,000 -$81,000 -$101,250 -$135,000

Contribution Margin $94,000 $141,000 $176,250 $235,000

64% 64% 64% 64%

Fixed Cost -$60,000 -$60,000 -$60,000 -$60,000

Total Cost -$114,000 -$141,000 -$161,250 -$195,000

Operating Income $34,000 $81,000 $116,250 $175,000

5 0

3 years ago