Answer:
$51,300
Explanation:
Given that,
Assets require = $380,000
Return on the invested capital, ROE = 13.5%
ROE = Net income ÷ Total Equity
0.135 = Net income ÷ $380,000
0.135 × $380,000 = Net income
$51,300 = Net income
Therefore, the net income must be expected to warrant starting the business is $51,300.
Note: Since, all of the total assets are financed by the common stock.
Hi there
Excess reserve balance is
1,000−1,000×0.1=900
Hope it helps
I would say false because 'personal' is in the name. Your work doesn't really need to know the exact details (might depend on the business tho).
Answer:
Explanation:
The adjusting entry is shown below:
Office supplies expense A/c Dr $257
To Office supplies $257
(Being adjusted entry recorded in respect of office supplies)
Since in the question it is given that, the debit balance of office supply is $363 and the physical count show $107 unused supplies which mean it is of no use. So, the actual amount of office supplies would be calculated by applying an equation which is shown below:
= Office supplies debit balance - unused office supplies
= $363 - $107
= $257
Moreover, the office supply is shown in the balance sheet under the assets account. And, to find out the correct value of the office supply we debit the expense account and credit the asset account.
Answer:
A
Explanation:
Economic risk is the risk that macroeconomic conditions would affect the value of investment .
Examples of economic risks are Recession and inflation
