To calculate the accrued interest:
Just multiply the interest rate by the balance to determine the annual interest expense. Divide the annual interest expense by 12 to calculate the amount of interest to record in a monthly adjusting entry.So fotr this problem, if a $15,000 note payable has a 6 percent interest rate, multiply 10 percent, or 0.06, by $15,000 to get $900 in annual interest. Divide $900 by 12 to get $75 in monthly interest.
Therefore, the accrued interest is $75.
Answer:
Actual level of activity which is 290,000 units
Explanation:
Although budgeted was 300,000 units, in order to understand the efficiency of labour in terms of the number of direct labour hours used, it must be flexed in order for it to be comparable.
for example they used only 135,000 units instead of budgeted which is 150,000 but although that is good, it does not tell us all the story, we will also consider the fact that they produced lesser quantities than planned which is 290,000 rather than 300,000.
Answer:
total petty cash expenses:
- Postage stamps $58
- Courier $73
- Company lunch $61
- Office decorations $30
- total $222
money left in the petty cash fund $68, so $10 are missing
December 31, petty cash fund reimbursement:
Dr Miscellaneous expenses 222
Dr Petty cash shortage 10
Cr Cash 232
December 31, bond sinking fund established:
Dr Other assets account 30,000
Cr Cash 30,000
December 31, petty cash fund is reduced by $50
Dr Cash 50
Cr Petty cash fund 50
Answer:
(a) 4.2% (b) 0.52
Explanation:
Solution
The sale of total assets = 1.4
Return on assets and PAT/assets= 6%
ROE PAT/Equity =9%
(a)Profit margin/PAT/Sales is defined as follows:
profit margin = ROA/(Sales/Total assets)= 6%/1.4 = 0.42 = 4.2%
(b) ROE=profit margin X*Sales/Assets X (Assets/Equity)
= Assets/Equity=9%/ =(4.2%*1.4)
9% (0.058)
= 0.005292 = 0.52
Equity/assets 0.52
Debt assets=1- equity/assets
0.52
Answer:
Reduce
Explanation:
Open market operations is one of the monetary policy instrument used by the Fed for controlling the money supply in an economy. There is a buying and selling of government securities in the open market. In our case, there is a situation of inflation.
In this situation, Fed sells the government securities to the public. Therefore, there is a flow of money from public to Fed. Hence, there is a fall in the money supply in an economy.
