Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NATaylor Bennett began his sole proprietorship by contributing $25,000 of his own money to the business. AssetsLiabilitiesStk. EquityRevenuesExpensesNetStmt. of ?IncomeCash Flows???????
What will be an ideal response?
(I) (NA) (I) (NA) (NA) (NA) (I)
The contribution will increase the proprietorship's assets (cash) and its owner's equity (Bennett, capital). It is reported as a cash inflow in the financing activities section of the statement of cash flows.
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Zennia Company provides its employees with varying amounts of vacation per year, depending on the length ofemployment. The estimated amount of the current year's vacation cost is $135,000 . The journal entry to recordthe adjusting entry required on December 31, the end of the current year, to record the current month's accruedvacation pay is
a. $135,000 b. $67,500 c. $0 d. $11,250
An economy has fifty households, all of which have incomes of $25,000 each in period 2. The twenty-five poor households have incomes of $10,000 each in period 1, while the twenty-five rich households have incomes of $20,000 each in period 1. Assume that the price of the good is $1 in both periods. Suppose that each household decides that its consumption in period 1 will equal 50 percent of the present value of its income from both periods.
a.Calculate the present value of income for poor households as a function of the interest rate. Calculate the amount that poor households will spend on consumption, as a function of the interest rate. Calculate the amount that poor households will save as a function of the real interest rate. Show your work. b.Calculate the present value of income for rich households as a function of the interest rate. Calculate the amount that rich households will spend on consumption, as a function of the interest rate. Calculate the amount that rich households will save as a function of the real interest rate. Show your work. c.Given the equations you calculated for savings for each type of household and assuming that the households borrow from each other, find the equilibrium value of the interest rate. Show your work. What will be an ideal response?
These types of followers, according to Kellerman, demonstrate a medium level of engagement in the group’s goal and may support or oppose the leader.
A. participants B. diehards C. aliens D. individualists
The UCC applies to real estate mortgages and trust deeds since they are security interests
a. True b. False Indicate whether the statement is true or false