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2 years ago

What is the coordinating mechanism in a market system?

Business

1 answer:

Sholpan [36]2 years ago

7 0

Answer:

The price mechanism is the central coordinating mechanism in a market economy. Prices tell people what to use their resources.

Explanation:

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FTYZ Transport Inc. was supposed to pay wages amounting to $1,500 in March, which was the last month of its accounting period. H

leva [86]

Answer: Wages account debit

Wages payable account credit

Explanation:

Sdjusting entries are simply referred to as the journal entries that are made when the accounting period ends such that there is allocation of the income and the expenditure incurred by the economic agent to the period in which the income and the expenditure occurred.

In this case, the adjusting journal entry passed by the accountant will be to debit the wages account by $1500 and then credit the wages payable account by $1500.

7 0

2 years ago

On April 1, Moloney Musical Instruments sold merchandise on account to Fronke's Flutes for $7,000 on Invoice 1001, terms 2/10, n

Eduardwww [97]

Answer:

The question is "Record the transactions on April 1 and April 10. View transaction list Journal entry worksheet Record the sale on April 1."

Date Account Title and Explanation Debit Credit

April 1 Account receivables $7,000

Sales revenue $7,000

April 10. Cash ($7,000*98%) $6,860

Sales discount ($7,000*2%) $140

Account receivables $7,000

3 0

2 years ago

Mr. Deli wants to start a small sandwich shop in his neighborhood. He has enormous amounts of cash that he inherited from his Un

Brilliant_brown [7]

Answer:

sole proprietorship

Explanation:

A sole proprietorship is a type of business that is owned by one person

Characteristics

1. it is owned by one person

2. the business has unlimited liability

3. the business has limited access to capital

4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies

5. the business is usually not separated from the owner

8 0

2 years ago

The following transactions occur for Cardinal Music Academy during the month of October:

tamaranim1 [39]

Answer:

The entries to record the transactions are given below.

a. Provide music lessons to students for $7,000 cash.

Debit Cash Asset $ 7000

CreditService Revenue income $ 7000

b. Purchase prepaid insurance to protect musical equipment over the next year for $3,000 cash.

Debit Prepaid Insurance equipment Asset $ 3000

Credit Cash Asset $ 3000

c. Purchase musical equipment for $10,000 cash.

Debit Equipment Asset $ 10,000

Credit Cash Asset $ 10,000

d. Obtain a loan from a bank by signing a note for $10,000

Debit Cash Asset $ 10,000

Credit Notes payable $ 10,000

7 0

2 years ago

5,000 7.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 105 percent of par; the bonds ma

vitfil [10]

Answer:

10.53%

Explanation:

WACC = wE*rE + wP*rP + wD*rD(1-tax)

Market values;

Debt = 1.05 *5,000*1000 = 5,250,000

Preferred stock = 15,500 *107 = 1,658,500

Common equity = 105,000 *63 = 6,615,000

Total market value = 13,523,500

wE = 6,615,000/ 13,523,500 = 0.4891

wP= 1,658,500/13,523,500 = 0.1226

wD = 5,250,000/13,523,500 = 0.3882

Cost of capital;

Cost of common equity, rE using CAPM;

rE = 0.06 + (1.13*0.09) = 0.1617

rE = 16.17%

Cost of preferred stock = 6%

Cost of debt

using a financial calculator, input the following; N= 38, PV = -1050, PMT = 37.5,

FV =1000, then CPT I/Y = 3.51% . So annual rate = 3.51% *2 = 7.02%

WACC = (0.4891*0.1617) +(0.1226* 0.06) + [0.3882 *0.0702(1-0.31)]

WACC = 0.0791 + 0.007356 + 0.0188

WACC = 0.1053 or 10.53%

4 0

3 years ago