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3 years ago

On July 1, 2018, Fred City ordered $1,500 of office supplies.They were to be paid for out of the general fund. Entry under:

Business

1 answer:

mel-nik [20]3 years ago

6 0

Answer:

A) Dr. Encumbrances – Office supplies No entry

Cr. Encumbrances outstanding

Explanation:

The journal entry is given below;

For Governmental fund financial statements

Encumbrances-Office Supplies $1,500

To Encumbrances Outstanding $1,500

(Being Office Supplies ordered is recorded)

For Government-wide financial statements

No journal entry is required as under the accrual accounting, no entry should be recorded until the transaction does not arise

Therefore the option a is correct

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Discouraged workers are people who want to work but have given up trying to find a job after an unsuccessful search.

Softa [21]

Answer: TRUE

Explanation: Discouraged workers are that portion of the population in an economy who have legal age for employment and also wants to get employed but due to long term of unemployment have now stopped looking for it.

Due to repetitive failures in attempt of seeking employment, this section of labor force gets discouraged and is not considered while evaluating unemployment rate in an economy.

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3 years ago

Katlyn Williams owns a company that makes specialized components for the aerospace industry. Her most important customer is a co

omeli [17]

Answer:

Need to accommodate the growth of a key customer.

Explanation:

In the given scenarios Katlyn is motivated to keep her company growing because her most important customer is a company that is growing at a rate of 33% per year.

To satisfy the customer needs for specialised components of aerospace equipment, Katlyn's company must also grow in output or they will not be able to satisfy the customer's need.

This demonstrates need to accommodate the growth of a key customer.

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3 years ago

Read 2 more answers

Dr. G, the principal at Westside High School Academy, is worried that the students who win academic awards might also be more li

rosijanka [135]

No, Dr G has nothing to worry about because only 8 students won the academic as well as fine arts award out of 128 academic award winners. This corresponds to very low percentage of joint winners out of just academic award winners (0.0625%)

Explanation:

Total students in the Westside High School- 768

Winner of academic awards- 128

Winner of fine arts awards- 48

Students who won both awards- 8

Dr G pre assumption= Dr G was worried that winner of academic awards would win fine awards more likely.

But it seems that his assumtions are wrong since only 8 students out of 128 students won joint awards (meaning only 8 students won awards for fine arts as well as academic awards). Similarly, this corresponds to only 0.0625% of students winning academic awards as well as Fine arts awards.

8 0

3 years ago

First National Bank charges 13.6 percent compounded monthly on its business loans. First United Bank charges 13.9 percent compou

melomori [17]

Answer:

First National EAR 14.48%

First United EAR 14.38%

Explanation:

Calculation to determine Calculate the EAR for First National Bank and First United Bank.

Using this formula

EAR = [1 + (APR / m)]m − 1

Let plug in the formula

First National EAR = [1 + (.136 / 12)]12 − 1

First National EAR= .1448*100

First National EAR=14.48%

First United EAR = [1 + (.139 / 2)]2 − 1

First United EAR = .1438*100

First United EAR = 14.38%

Therefore the EAR for First National Bank and First United Bank will be :

First National EAR 14.48%

First United EAR 14.38%

8 0

3 years ago

Hardwig Inc. is considering whether to pursue a restricted or relaxed current asset investment policy. The firm's annual sales a

DerKrebs [107]

Answer:

d. 2.24%

Explanation:

total annual sales = $3,600,000

fixed asset turnover = total sales / fixed assets = 4, that means that total fixed assets = $3,600,000 / 4 = $900,000

debt = 50% = $450,000

equity = 50% = $450,000

EBIT = $150,000

net income = $150,000 x (1 - 40%) = $90,000

restricted policy:

asset turnover = 2.5

sales = $3,600,000 x (1 - 15%) = $3,060,000

EBIT = $135,000

net income = $81,000

assets = $3,060,000 / 2.5 = $1,224,000

equity = $1,224,000 x 50% = $612,000

ROE = $81,000 / $612,000 = 13.24%

relaxed policy:

asset turnover = 2.2

EBIT = $150,000

net income = $90,000

assets = $3,600,000 / 2.2 = $1,636,364

equity = 50% x $1,636,364 = $818,182

ROE = $90,000 / $818,182 = 11%

difference between ROEs = 13.24% - 11% = 2.24%

8 0

3 years ago