Coffee to

Third national bank has reserves of $20,000 and checkable deposits of $200,000. the reserve ratio is 10 percent. households depo

irga5000 [103]

Reserves - $20,000
Checkable Deposits - $200,000
Reserves Ratio - 10
Household Deposit - $15,000
Level of Excess Reserves - ?

Solution:
Checkable Deposits = $200,000 + $15,000 = $215,000
Required Reserves = 0.10 x $215,000 = $21,500
Excess Reserves = Actual Reserves - Required Reserves
= $35,000 - $21,500 = $13,500

6 0

3 years ago

Abardeen Corporation borrowed $90,000 from the bank on October 1, 2018. The note had an 8 percent annual rate of interest and ma

TiliK225 [7]

Answer:

Interest paid in cash in 2018 = $0

Interest recognized on the Income statement = $1,800

Liabilities recognized = $90,000

Amount paid for Principal and interest = $93,600

Interest reported on 2019 Income statement = 1800

Explanation:

Interest paid in cash in 2018 is zero because interest and principal were paid in cash on the maturity date.

Interest recognized in 2018 = 90000*0.08*3/12 = $1800

liabilities are recognized at original amount because the interest is not capitalized and no payment made thus far.

Amount paid on maturity date is 93,600 ( 90000 principal, 3600 interest)

interest reported is for three months jan - march

7 0

3 years ago

One of the most important activities of entrepreneurs is identifying their customers. This includes understanding when consumers

Margarita [4]

Answer:

Explanation:

First we have to understand what is a consumer. A consumer is that person who purchases a goods or services for personal use.

1. Early adopters. (first adopters)

2. Innovators. (first adopters)

3. Early Majority. (first adopters)

4. Late majority. ( Last adopters)

5. Laggard. ( Last adopters)

2. a. High-income people who have inherited their wealth. ( Laggard)

b. Future oriented Below-average-income wage earners ( Innovators)

c. Present (security) oriented High-income people who have incomes from salary and investment. ( Late majority)

d. Highest professionals, including merchants and financiers. ( Last majority )

e. Present oriented Average-income wage earners. ( Early adopters)

f. Middle managers and owners of medium-sized businesses. ( Early Majority)

g. Above-average-income wage earners. ( early adopters)

h. Present oriented, but worried about the impact of time. (Late majority)

I. Unskilled labor Skilled labor. (Innovators)

J. Owners of small businesses; non-managerial office and union managers. ( early adopters)

K. Tradition-oriented people who often live in the past. (Laggard)

6 0

3 years ago

What is a tax bracket?

Rom4ik [11]

Answer:

a tax bracket refers to a range of income subject to a certain income tax rate.

Explanation:

so basically it's just a range of income taxed at a given rate

8 0

3 years ago

ivanzaharov [21]

Answer:

1. Bird Company (Buyer)

Apr-02 Dr Merchandise Inventory $20,335

Cr Accounts Payable $20,335

Apr-08 Dr Merchandise Inventory $25,000

Cr Accounts Payable $25,000

Apr-08 No entry

Apr-12 Dr Accounts Payable $20,335

Cr Cash $19,937

Cr Merchandise Inventory $ 398

Apr-18 Dr Cash $ 2,000

Cr Merchandise Inventory $ 2,000

Apr-23 Dr Accounts Payable $25,000

Cr Cash $24,750

Cr Merchandise Inventory $ 250

Apr-24 Dr Merchandise Inventory $11,200

Cr Accounts Payable $11,200

Apr-26 Dr Merchandise Inventory $280

Cr Cash $280

2.Swan Company (Seller)

Apr-02 Dr Accounts Receivable $20,335

Cr Sales Revenue $19,900

Cr Cash $435

Dr Cost of Goods Sold $12,500

Dr Merchandise Inventory $12,500

Apr-08 Dr Accounts Receivable $ 25,000

Cr Sales Revenue $ 25,000

Dr Cost of Goods Sold $15,000

Cr Merchandise Inventory $15,000

Apr-08 Dr Delivery Expense $650

Cr Cash $650

Apr-12 Dr Cash $19,937

Dr Sales Discounts $ 398

Cr Accounts Receivable $20,335

Apr-18 Dr Sales Returns and allowances $ 2,000

Cr Cash $ 2,000

Apr-23 Dr Cash $ 24,750

Dr Sales Discounts $ 250

Cr Accounts Receivable $25,000

Apr-24 Dr Accounts Receivable $11,200

Cr Sales Revenue $11,200

Dr Cost of Goods Sold $6,700

Cr Merchandise Inventory $6,700

Apr-26 No entry

Explanation:

1. Preparation of the journal entry for Bird Company (the buyer).

Bird Company (Buyer)

Apr-02 Dr Merchandise Inventory $20,335

Cr Accounts Payable $20,335

($19,900+$435)

Apr-08 Dr Merchandise Inventory $25,000

Cr Accounts Payable $25,000

Apr-08 No entry

Apr-12 Dr Accounts Payable $20,335

($19,900+$435)

Cr Cash $19,937

($20,334-$398)

Cr Merchandise Inventory $ 398

($19,900*2%)

Apr-18 Dr Cash $ 2,000

Cr Merchandise Inventory $ 2,000

Apr-23 Dr Accounts Payable $25,000

Cr Cash $24,750

($25,000-$250)

Cr Merchandise Inventory $ 250

(1%*$25,000)

Apr-24 Dr Merchandise Inventory $11,200

Cr Accounts Payable $11,200

Apr-26 Dr Merchandise Inventory $280

Cr Cash $280

2. Preparation of the journal entry for Bird Company the (Seller).

Swan Company (Seller)

Apr-02 Dr Accounts Receivable $20,335

($19,900+$435)

Cr Sales Revenue $19,900

Cr Cash $435

Dr Cost of Goods Sold $12,500

Dr Merchandise Inventory $12,500

Apr-08 Dr Accounts Receivable $ 25,000

Cr Sales Revenue $ 25,000

Dr Cost of Goods Sold $15,000

Cr Merchandise Inventory $15,000

Apr-08 Dr Delivery Expense $650

Cr Cash $650

Apr-12 Dr Cash $19,937

($20,335-$398)

Dr Sales Discounts $ 398

(2%*$19,900)

Cr Accounts Receivable $20,335

(19,900+435)

Apr-18 Dr Sales Returns and allowances $ 2,000

Cr Cash $ 2,000

Apr-23 Dr Cash $ 24,750

Dr Sales Discounts $ 250

(1%*25,000)

Cr Accounts Receivable $25,000

Apr-24 Dr Accounts Receivable $11,200

Cr Sales Revenue $11,200

Dr Cost of Goods Sold $6,700

Cr Merchandise Inventory $6,700

Apr-26 No entry

4 0

3 years ago