Answer:
a. The journal entry for recording the purchase of the new carpet would be as follows:
April 30 Debit Credit
Carpet $18,000
Cash $18,000
b. The journal entry would be as follows:
December 31 Debit Credit
Depreciation expense - carpet $800
Accumulated depreciation- carpet $800
Explanation:
a. The journal entry for recording the purchase of the new carpet would be as follows:
April 30 Debit Credit
Carpet $18,000
Cash $18,000
b. According to the given data, the carpet is estimated to have a 15-year useful life and no residual value, therefore the December 31 adjusting entry for the partial-year depreciation expense for the carpet would be to debit Depreciation expense - carpet for $800 and to credit Accumulated depreciation- carpet for $800.
The journal entry would be as follows:
December 31 Debit Credit
Depreciation expense - carpet $800
Accumulated depreciation- carpet $800
Answer:
7.38%
Explanation:
Interest rate is the rate of difference between the current price and face value in a specified period of time in annual terms.
Face value Current price Coupon Maturity
100 95 0 1 year
100 92 1.5 paid every six months
One year rate = ( 100 / 95 ) - 1 = 0.0526 = 5.26%
Now use following formula to calculate the Two years rate
=Rate(4,1.5,-92,100)x2 = 0.0738 = 7.38%
Answer:
c) created both inflation and recession in the United States in the 1970s.
Explanation:
the recession and inflation started from '72 and end up in the earlys '80 is considered the greatest failure of American macroeconomic policy in the postwar period.
It was the cause of 1973 oil crisis when the Arab countries made an oil embargo against nations perceived as supporters for israel. Amongs this nation was the USA, the UK and Canada. This make the oil price to rise up to 400% This situation made a market crash and then, US leave the gold standard Also, within this period, the industrial areas in the countries to re-structure to consume less oil as it was scarse
During the period about 3 million of jobs were lost and inflation made peak at 20% per year.
An externality in business or economics is where an industrial activity has an unexpected side effect which does not figure in the cost of the goods and services involved. For example, I worked many years at a large mine. Just the existence of the mine there meant it was a no-hunting area so a side effect was that the moose used it as a refuge during hunting season which as a side effect was beneficial to the moose (and deer). Another example is that we used to crush mine rock for the haulroads for winter traction. As a result, it was found that the fines from this were concentrated with copper values so were put in the mill for processing-an unexpected outcome.