Answer:
9.17%
Explanation:
Interest on Note B = $227,000 * 8% * 6/12
Interest on Note B = $9,080
Remaining Interest = $16,300 - $9,080 = $7,220
Annual Interest Rate = $7,220 / $135,000 * 12/7
Annual Interest Rate = 0.0916825397
Annual Interest Rate = 9.16825397
Annual Interest Rate = 9.17%
Answer:
Depreciation for 6 months ending June 30, 2016 is $ 5,000 and the accounting entry to record the transaction is:
Depreciation Expense - Debit $ 5,000
Allowance for Depreciation - Credit $ 5,000
Explanation:
The depreciation charge for the year is calculated as follows:
Total cost of the equipment $ 55,000
Salvage Value $ 5,000
Net Depreciable value $ 50,000
Estimated Useful Life 5 years
Annual Depreciation expense(50000/5) $ 10,000
Depreciation for 6 months (10000/2) $ 5,000
Answer:
a. net income= understated, retained earnings= understated
Explanation:
In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if <u>ending inventory is understated</u>, then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to <u>net income and gross profit being understated.</u>
Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.
Answer: a. tests of conscientiousness
Explanation:
Test that measure conscientiousness essentially check to see if the prospective employee is capable of doing the tasks required of them well and with seriousness. The test will also show if the person is capable of showing the required diligence and care in their roles.
Such tests are free of bias in testing as conscientiousness can be measured evenly across cultures.
Answer:
Explanation:
When Leverett's exports became less popular, its savings, Y-C-G does not change. Reason being that, it is assumed that Y depends on the amount of capital and labour, consumption depends only on disposable income and government spending is a fixed extrinsic variable.
Since investment depends on interest rate, and Leverett is a small open economy that takes the interest rate as given, thus investment also does not change . Neither does net export change (This is shown by the S-I curve in the attachment).
The decreased popularity of Leverett's exports leads to an inward shift of the net export curve inward. At the new equilibrium,net exports remains unchanged, though the currency has depreciated.
Leverett's trade balance remained the same, despite the fact that its exports are less popular, this is due to the fact that the depreciated currency provides a stimulus to net exports which overcomes the unpopularity of its exports by making them cheaper.
b. Leverett's currency now buys less foreign currency, thus traveling abroad becomes more expensive. This is an instance showing that imports (including foreign travel) have become more expensive- as required to keep net exports unchanged in the case of decreased demand for exports.
