Answer:
Explanation:
The question says to complete the necessary adjusting entry
What is an adjusting entry:
An adjusting entry represent an accounting entry passed usually at the end of the accounting year to ensure that accounts following the matching principle. An adjusting entry can further be passed to calculate and bring in respective account balances at the end of the period.
Therefore, the required adjusting entry is as follows:
Date Particulars Debit Credit
Dec 30 Salaries expense $4,000
Salaries payable a/c $4,000
being the record of salaries accrued at the end of the year
Note: Since a day is $800 and there are 5 days, the accrual is $800 x 5 = $4,000
Answer:
Resource Market
Explanation:
A resource market is a market from where businesses purchase inputs that can be used for production.
Resource Market is a market where labor and other factors of production are sold in the circular flow model of income in economic theory.
In Resource Market, households are the sellers and firms are the buyers.
Answer: fast responses at a lower cost.
Explanation:
Online survey would be a very desirable survey to use because of it's low cost of preparation(saves the cost of printing) and quick response from the target audience. An online survey is a method of gathering information from a wide variety of people on a subject matter over the internet, by administering questionnaire's to them.
Answer:
14.29% or higher
Explanation:
Municipal bonds interest rates are tax free. Corporate bond rates however are have tac benefits through tax shield.
The formula for aftertax corporate bond rate = pretax rate(1-tax)
pretax rate = 7% or 0.07 as a decimal
aftertax rate(to be indifferent between the two) = 6% or 0.6
In order to be indifferent, the tax rate would be;
0.07 ( 1- tax ) = 0.06
0.07 - 0.07tax = 0.06
0.07 - 0.06 = 0.07tax
0.01 / 0.07 = tax
tax = 0.1429 or 14.29%
Therefore, Investors with a tax rate of 14.29% or higher would prefer the municipal bond.
Accounting cycle has various steps to discuss, which are listed below,
Explanation:
- The first step in accounting cycle is to analyze and have a record of transactions.
- Post closing trial balance is an optional step in the accounting cycle.
- Journalizing and posting the closing entries are the steps required to complete throughout the accounting period.
- Adjustments of accounts, preparing the financial statements and closing accounts are completed at the end of accounting cycle period.
- The last step in the accounting cycle is to post closing trial balance.
