The correct option is A.
Based on the table of fees, all the banking activities that Bill want to execute will cost more in the common bank compare with the state bank, which has a lower add up charges.
Answer:
Aug. 1 Cash 37,800
Common Stock 37,800 (Investment of cash for stock)
Dr.Cash 37,800
Cr. Common stock 37,800
10 Cash 17,010
Service Revenue 17,010 (Received cash for services performed)
Dr. Cash 17010
Cr. Service Revenue 17010
12 Equipment 31,500
Cash 5,040
Notes Payable 26,460 (Purchased office equipment for cash and notes payable)
Dr. Office Equipment 31500
Cr. Cash 5040
Cr. Account Payable 26460
25 Account Receivable 10,080
Service Revenue 10,080 (Billed clients for services performed)
Dr. Account Receivable 10080
Cr. Sales 10080
31 Cash 5,544
Accounts Receivable 5,544 (Receipt of cash on account)
Dr. Cash 5544
Cr. Account Receivable 5544
T account are prepared in the attached MS Excel File, Please find that.
Answer: b. P2
Explanation:
Average Cost Pricing regulations being imposed on natural monopolies means that the regulators want them to charge customers a price that is close to or is the same as the Average cost it costs to produce goods and services.
The price that the Monopoly will charge is therefore the intersection between the Average Total Cost Curve and the Demand curve.
From the graph that price is P2 so that is the price that will be charged.
Answer:
($500) = NA + NA + ($500)
Explanation:
In this question, the following accounting equation is used
Assets = Liability + common stock + retained earnings
As in the transaction, it is given that $500 cash is paid for advertising expense, so this event would be affecting the accounting equation for asset and the retained earning account i.e
($500) = NA + NA + ($500)
As cash is paid which reduces the asset balance plus the retained earning balance is also get reduced by $500
Answer:
(A) 9.6%
(B) 37,296,880
Explanation:
Current earnings for Bennington Enterprise is $34.03 million
The ROE is 12 percent
= 12/100
= 0.12
Retention ratio is 80 percent
= 80/100
= 0.8
(A) The firms earning growth rate can be calculated as follows
= 0.8× 0.12
= 0.096×100
= 9.6%
(B) Next year earnings can be calculated as follows
= 34,030,000 × (1+0.096)
= 34,030,000× 1.096
= 37,296,880