<u>Solution and Explanation:</u>
<u>Journal entry to record the purchase the bags of insultaion.</u>
Date Particulars Debit Credit
Inventory $6875
accounts payable $6875
(Purchased insulated bags from Glassco Inc., 1250bags at the rate $5.5 each)
<u>entry to record the payment for shipping</u>
Inventory $320
cash $320
( paid shipping charges for bags to warehouse)
<u>entry for return of the defective bags</u>
accounts payable $275
Inventory $275
( returned defective bags to glassco Inc)
<u>To record the payment for the bags kept by compass.</u>
Accounts payable $6600
cash $6600
( payment for remaining bags to Glassco Inc., )
Answer:
The five banks' reserves will increase by $50 million, while the monetary base will increase by $100 million ($50 million in banks and $50 million out with the clients)
Explanation:
The five banks:
assets liabilities
reserves +$100 million Fed's loan +$100 million
reserves -$50 million clients' deposits -$50 million
net effect
reserves +$50 million Fed's loan +$100 million
clients' deposits -$50 million
The Fed
:
assets liabilities
loans to 5 banks reserves in banks +$50 million
+$100 million
currency +$50 million
net effect
loans +$100 million reserves +$50 million
currency +$50 million
Answer:
The correct statement is:
A. stocks and bonds issued by businesses to raise funds
Explanation:
When business starts, it needs money to operate, and a very effective way to obtain money is offer stocks to the public. The more stocks are bought, the more money the business raises, and this money becomes capital, which is one of the four factors of production (the other three being labor, land, and entrepreneurship).
The D statement could be true as well, because tools and machinery are also part of the capital of a company. However, the question is specifically referring to money, and while tools and machinery can become liquid (that is, can become liquid), they are money per se.
Answer:
Franchising
Explanation:
Since Marianna wants to open additional locations, but she doesn't have a lot of start-up capital, the consolidation strategy for fragmented industries that she could utilize is franchising
Franchising is a business expansion model and marketing concept which can be adopted by an organization that does not have to put down additional capital for expansion.
The expanding firm (a franchisor) only needs to license its know-how, procedures, intellectual property, and the use of its business model, brand, and rights to sell its branded products and services to a franchisee.
The franchisee is the party to bring the capital for the expansion.
Much explains why most restaurants use this same strategy, e.g. KFC, Subway and McDonald's;