Elie Company purchased a building with a market value of $ 295 comma 000 and land with a market value of $ 45 comma 000 on January 1, 2018. Elie Company paid $ 40 comma 000 cash and signed a 20-year, 6% mortgage payable for the balance. Requirements:
1. JournalizetheJanuary1,2018,purchase.
2. Journalize the first monthly payment of $3,370 on January 31, 2018. (Round to the nearest dollar.)
Answers
Answer:
1)Jan 1
Dr Building $295,000
Dr Land $45,000
Cr Mortgages Payable 300,000
Cr Cash $40,000
2)
Jan. 31
Dr Mortgages Payable $1870
Dr Interest Expense $1,500
Cr Cash3,370
Explanation:
1) Journal entries
Jan. 1
Dr Building $295,000
Dr Land $45,000
Cr Mortgages Payable 300,000
($295,000+$45,000=$340,000-$40,000
=$300,000)
Cr Cash $40,000
Purchased building and land with mortgages payable and cash payment.
2)
Jan. 31
Dr Mortgages Payable ($3,370 − $1,500) $1870
Dr Interest Expense (300,000 × 0.06 × 1/12)$1,500
Cr Cash3,370
Paid principal and interest payment
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Answers
Answer:
Option (B) is correct.
Explanation:
On November 21,
Note amount = $6,000
Period = 60-day
Interest rate = 12%
When Note is not paid by the market at maturity, then
The Accounts Receivable Account is debited with the Par Value of Note plus interest income and credited Notes Receivables $6,000 and Credit Interest Revenue $120.
Therefore, the journal entry is as follows:
Accounts Receivable A/c Dr. $6,120
To Notes Receivables $6,000
To Interest Revenue $120
(To record the note)
Final answer:
The journal entry to recognize a note not being paid at maturity is to debit Cash and credit Notes Receivable for the principal balance and to credit Interest Revenue for the accrued interest.
Explanation:
The correct journal entry to recognize the event of a $6,000, 60-day, 12% note not being paid by the maker at maturity is: A. debit Cash, $6,120
credit Notes Receivable, $6,12
This entry debits the Cash account to account for the amount the maker owes and credits the Notes Receivable account to remove the note from the books. The additional $120 represents the accrued interest, which is recognized as Revenue.
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b. The current tax system acts as an automatic stabilizer.
c. Businesses make investment plans many month in advance.
d. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates.
Answers
Answers
The tax that needs to be reduced is $ 4.66 billion
Further Explanation
The amount (Deflationary / recessionary) gap =
Keynesian Spending Multiplier from government spending
k =
Tax Multiplier from tax
t =
Option 1: Increased government spending (Loosening / Expansionary Fiscal Policy) by
GovSpending (Gs) =
Option 2: Tax is reduced by (-)
Tax = =
In economics, deflation is a period in which prices generally fall and the value of money increases. Deflation is the opposite of inflation. If inflation occurs due to a large amount of money circulating in the community, deflation occurs due to a lack of money in circulation. One way to overcome deflation is to reduce interest rates.
In the macroeconomy, a recession is a condition when the gross domestic product (GDP) decreases or when real economic growth is negative for two quarters or more in one year. Recession can result in a simultaneous decline in all economic activities such as employment, investment, and corporate profits. Recession is often associated with falling prices (deflation), or, conversely, sharply rising prices (inflation) in a process known as stagflation. The economic recession that lasts long is called economic depression. The drastic decline in the level of the economy (usually due to severe depression, or due to hyperinflation) is called economic bankruptcy (economic collapse). Columnist Sidney J. Harris distinguishes the above terms in this way: "A recession is when a neighbor loses a job; depression is when you lose a job."
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Deflationary brainly.com/question/13135934
To Reduce Tax brainly.com/question/13135934
Details
Class: College
Subject: Business
Keywords: Deflationary, tax, recessionary
Final answer:
To close the remainder of the recessionary gap, taxes need to be reduced by approximately $11.67 billion.
Explanation:
To close the remainder of the recessionary gap of $10 billion, the government has approved a spending increase of $3 billion. The question asks how much taxes need to be reduced to make up the difference. We can use the concept of the Marginal Propensity to Consume (MPC) to find the answer.
The MPC represents the proportion of additional income that individuals spend. In this case, the MPC is given as 0.6. Therefore, for every additional dollar of income, individuals will spend $0.6.
To determine how much taxes need to be reduced, we can use the formula:
Tax Reduction = (Remainder of Recessionary Gap)/MPC
Substituting the values, Tax Reduction = $7 billion/0.6 = $11.67 billion. Therefore, taxes need to be reduced by approximately $11.67 billion to close the remainder of the recessionary gap.
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Answers
Answer:
e. Affiliative selling relationship
Explanation:
In an affiliative selling relationship, the buyer needs the information related to the product which helps the buyer to buy the product. The buyer trust on the seller with a view to satisfy his expectations
This relationship fully depends upon the trust which results in the best purchasing decision.
By maintaining the trust, the seller increase its sales which helps him to achieve its sales target
(before proration) in Each Account Balance(before proration)
Work-in-process $25 750 S11,400
Finished goods 53 225 26,600
Cost of goods sold 75,650 38.000
Total $154,625 $76,000
Direct materials inventory has a balance of S15,000. If Seaside uses the proration approach (based on the amount of manufacturing overhead in ending balances), what will be the final balance in fatal work-in-process inventory?
a $9.000
b. 523 350
c. $23,085
d. 58 735
Answers
Answer:
b. $23,350
Explanation:
The computation of final balance in fatal work-in-process inventory is presented with the help of spreadsheet as attached below:-
The formula is presented below:-
Amount of Over-allocated Overheads = Percentage of overhead applied × Over-allocated Overheads
Account Balance after = Account Balance before - Amount of Over-allocated Overheads
Therefore the correct answer is b. that is $23,350
Answers
Answer:
The property tax rate is $26.67
Explanation:
In this question, first, we have to compute the net assessed value which is shown below:
= Property value - property tax exemption - homestead exemption - veterans - old age - non profits
= $40,000,000 - $3,000,000 - $1,300,000 - $700,000 - $5,000,000
= $30,000,000
Now the property tax equals to
= (estimated property taxes) ÷ (Net assessed value) × 1000
= ($800,000 ÷ $30,000,000) × 1000
= $26.67