The future value of $1,000 today if it draws interest at 8% compounded annually for 10 years is $215
To find:
The future value of the borrowed amount after 10 years
The investment's present value, or PV, is $1000.
The rate of interest, r = 8% =8/100 = 0.08.
The time in years, t = 10.
n = 1 since the sum is compounded yearly.
The future value formula of compound interest:
FV = PV (1 + r / n)n t
FV = 1000(1+0.08/1)1x10
A = $2159
The future value = $2159
What is Future value ?
Future value is the value of a current asset at some time in the future based on an anticipated growth rate (FV).Investors can reasonably forecast an investment's profit using the FV formula.Calculating the FV of a market investment can be challenging because to market volatility and uncertainty over future investing conditions.One of two methods—compound interest or simple interest—can beused to calculate an asset's FV.To know more about Future value visit:
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A firm makes generous donations to charities, but its employees are always being scrutinized for engaging in questionable sales practices. this firm would be considered?
Generous humans are capable and inclined to provide. They deliver each financially and of themselves, in a way that blessings the recipient. Their presents may additionally consist of time, cash, matters, and encouragement. generous people also are able to get hold of in one of this manner that the giver profits from the interchange.
A beneficiant quantity of something is an awful lot large than is traditional or essential. He must be capable of holding his room tidy with a beneficiant amount of storage space. Synonyms: considerable, lavish, adequate, plentiful extra Synonyms of generous. generously adverb.
Some commonplace synonyms of generous are bountiful, liberal, and munificent. while most of these words imply "giving or given freely and unstintingly," beneficiant stresses warmhearted readiness to offer more than the size or importance of the gift.
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drag the items to classify each event as movement along the demand curve or a demand curve shift. the good is fertilizer for flowering plants.
Movement Along Demand Curve: The fertilizer becomes cheaper; the fertilizer becomes more expensive.
Factors That cause shift in demand curve: Chicken manure, a substitute for fertilizer, becomes more expensive, Roses become cheaper.
A demand curve is a graphical depiction of the correlation between commodity and their price, and the way the graph alters as their values change.
Movement along the Demand Curve is caused by commodity price fluctuations. This has an additional impact on the quantity demanded. All other variables remain static. In this case, the graph keeps moving along the Y-axis whereas the price is projected against it. The other axis, moreover, stays unchanged. So, in this scenario, a significantly raise in price lessens Demand, while a decline in price increases Demand.
A shift in the demand curve takes place if any other factor besides of price fluctuate. It may be owing to the quantity, income level, or a variety of other variables underlying the Demand Curve. Also, the price can alter as a result of this. This causes a shift to the left or right in the Demand Curve.
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100 pts please help me :(
Give your opinion about college loan forgiveness plan recently announced by President Biden? Written opinion MUST BE your original thought (not copied/plagiarized).
The college loan forgiveness plan that was recently announced by President Biden was a good plan that will help to alleviate those who are unable to repay their loans.
What is a college loan forgiveness plan?This refers to an additional features added to a loan repayment to help those who are less privileged. The college loan forgiveness plan is only attributed to the College loan which were used to pay school fee, hostel fee and other expenses during the course of learning.
In United States, the current students and borrowers who have federally held undergraduate, graduate that were distributed on or before June 30 are eligible for the forgiveness plan.
In order to qualify for Biden's student loan forgiveness plan, borrowers must earn under $125,000 in annual income or $250,000 if they are married. Therefore, the college loan forgiveness plan that was recently announced by President Biden was a good plan that will help to alleviate those who are unable to repay their loans.
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inaccurate can lead to excess and/or shortages throughout the organization and the supply chain.
Inaccurate information can lead to excess or shortage throughout the organization and the supply chain as minor fluctuations in forecasting can results in shortage or excess inventory for the distributors, manufacturers and suppliers.
Inventory should not be excess and not have shortage too because excess creates cost for the organization such as cost of storing, cost of carrying whereas shortage cannot fulfil the demand of the customers which results in decrease in company's goodwill.
Therefore supply chain management should be adequate which works effectively and efficiently.
In the earlier times, people cannot predict the correct information which results in fluctuations but in today's time with the help of technology, internet accurate information can be collected and communicated to the respective users.
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When a firm starts up or buys a business outside of its current product line and markets, it is pursuing which growth strategy?.
When a firm starts up or buys a business outside of its current product line and markets, it is pursuing diversification growth strategy.
What is diversification growth?
A growth strategy known as diversification is expanding your business into a new market or industry while also developing a new product specifically for that market. Concentric diversification is the creation of new goods and services that are interchangeable with those you presently market. For instance, an orange juice company introduces a brand-new "smooth" orange juice beverage alongside their flagship orange juice "with chunks."
Therefore,
When a firm starts up or buys a business outside of its current product line and markets, it is pursuing diversification growth strategy.
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the managers of a car-detailing shop have decided to utilize the hawthorne effect to increase productivity, which means using cameras to film employees at work in order to isolate the parts of a job.
Answer: False
Explanation:
The change in the behaviour of participants when they are aware that they are being observed is called Hawthorne effect. It can be defined as increase in output in response to being watched.
The term emerged with Hawthorne studies that tested the impact of various working condition variables on the productivity of the employees. Although experts do not believe that there was any Hawthorne effect in Hawthorne studies.
Hawthornian studies began around 1924 at the western Electric plant in Illinois, Chicago.
Over the past 30 years technological advances have reduced the cost of computer chips. how do you think this hass affected the market for omputers?
A product's demand is influenced by the cost of its alternatives and complements.
Demand for a product and the cost of an alternative directly correlate. An inverse relationship exists between a product's demand and the cost of its replacement.
In economics, the relationship between the quantity of a good or service that producers want to sell at different prices and the quantity that consumers want to buy is known as supply and demand.
It serves as the primary model for determining prices in economic theory. The interaction of supply and demand in a market determines the price of a good.
The cost of manufacturing computer chips will decrease if chips are less expensive. Both the supply of computers and the number of computers purchased will therefore increase.
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Organizations use ___________________ hold to preserve all forms of relevant information when litigation is reasonably anticipated.
Legal hold is a procedure used during data capture to preserve all relevant information in its various forms when litigation is reasonably anticipated.
What is litigation?Bringing a matter before a court of law is known as litigation. In the event that the parties to a disagreement are unable to come to an amicable resolution, they will each present their respective arguments to the court for decision. It is a general term that refers to a drawn-out and occasionally challenging process. The steps in the litigation procedure will be broken down in this article. The standing orders of judges and the regional regulations of each court serve as supplements to these. In the event that a dispute cannot be resolved amicably, the parties will each present their separate cases to the court for judgement.
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What are some financial intermediaries that are not formally organized or regulated as investment companies but serve similar functions?
Financial intermediaries like commingled funds, hedge funds, and real estate investment trusts carry out comparable tasks even though they are not formally set up or subject to the same regulations as investment companies.
A commercial bank, investment bank, mutual fund, or pension fund are examples of organizations that serve as the middleman between two parties in a financial transaction. Consumers as a whole gain from financial intermediaries' safety, liquidity, and economies of scale in the banking and asset management industries. Disintermediation is significantly less of a concern in other areas of finance, such as banking and insurance, even though it does threaten to abolish the financial intermediary in other areas, such as investing.
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A construction company has 12 workers who are paid minimum wage. the company wants to reduce costs because there is less work. which action is an available and effective option from the perspective of the business? have the workers work more quickly hire workers who are not as skilled reduce the amount workers are paid select several workers to be laid off
If a construction company has 12 workers who are paid minimum wage. and the company wants to reduce costs because there is less work. The action is an available and effective option from the perspective of the business is: Select several workers to be laid off.
What is cost reduction?Cost reduction can be defined as the process of cutting down expenses so as to save more money and this tend to occur when expenses is higher than revenue.
To reduce cost the best option is for the company to select or choose several workers to be laid off.
Therefore the action is an available and effective option from the perspective of the business is: Select several workers to be laid off.
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Answer: Select several workers to be laid off.
Explanation: Took the test, got it right.
Determining how a company's activities and resources are to be grouped is called?
Organizing is the process of selecting how to allocate a company's resources and activities.
Delegating responsibilities, classifying them into departments, distributing power, and allocating resources across the organization are all aspects of organizing. Managers prepare employees, resources, rules, and processes during the organizing phase to meet the plan's objectives.
The process of deciding how to divide up a company's resources and activities is known as organizing.
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Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is.
If a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is: 1.6 bushels of squash.
Opportunity costUsing this formula
Opportunity cost= bushels of squash/bushels of tomatoes
Let plug in the formula
Opportunity cost=8/5
Opportunity cost=1.6 bushels of squash
Therefore If a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is: 1.6 bushels of squash.
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the inverse demand function of a group of consumers for a given type of widgets is given by the following expression: π
The inverse demand function of a group of consumers for a given type of widgets is given by the following expression:
[tex]\pi=-10q+2000[/tex]
What is meant by the inverse demand function?
Inverse demand functions is the basis of strategic pricing. However, to calculate a profit- or sales-optimal price, the inverse demand function must be combined with the sales and profit function. As the inverse demand function of a market is often not known in practice. It is also one of the qualitative methods such as expert estimates.
In other words, an inverse demand function can be described by the equation:
x = a + b * p,
where a represents the prohibitive price, that is, the price at which the sales quantity is zero.
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The inverse demand function of a group of consumers for a given type of widgets is π=− 10 q+ 2000 [$/unit].
What is inverse demand function?The inverse demand function, or x = x, in pricing theory, describes the functional relationship between a price p and the amount that can be sold at this price (p).
The opposite of a demand function is a demand function's inverse.
The demand function that appears in the renowned Marshallian Scissors diagram is the inverse demand function.
Because the independent variable is plotted on the y-axis and the dependent variable is plotted on the x-axis by economists, the function has this form.
Price is a function of quantity sought in the inverted demand curve.
Therefore, demand is represented by a horizontal axis and price is represented by a vertical axis.
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labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
The reason unemployment tend to change when the level of output changes is because: B) Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
What is an unemployment rate?An unemployment rate can be defined as a measure or percentage of the total labor force in a country (economy), who are unemployed but are actively seeking to be gainfully employed by the employers of labor.
The four factors of production.In Economics, there are four (4) factors of production and these include the following:
LandCapital resourcesEntrepreneurshipLaborIn conclusion, the reason unemployment usually change when the level of output (production) changes is simply because labor is considered as an input in the production process, and if output falls, employers would certainly need only fewer workers (employees) to make it, so the level of employment falls.
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Complete Question:
Why does unemployment tend to change when the level of output changes?
A)Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output.
B)Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
C)When output rises, persons are more interested in buying, and will work more to earn the income to buy things.
D)Persons face the option of buying or working, so that when they do more of one, the other necessarily falls.
E)When companies replace workers with machines, output rises, and people take time off from work to buy before returning to employment.
how is accounting knowledge beneficial to different business majors? accounting knowledge helps . (check all that apply.)
How accounting knowledge is beneficial to different business majors is: accounting knowledge helps: in setting prices by brand managers, to forecast revenue by financial analysts, to assess the value of investing options by investment analysts, to determine supply chain options.
What is accounting knowledge?Having knowledge about accounting and how it work is important for business owners as knowledge of accounting can help you to know how to forecast your revenue, how to prepare your financial statement or information etc.
Accounting knowledge can tend to helps in the following:
Accounting knowledge can help brand managers in setting prices.Accounting knowledge can help to financial analyst to forecast revenue.Accounting knowledge can help investment analyst to assess the value of investing options Accounting knowledge can help to know supply chain options.Therefore how accounting knowledge is beneficial to different business majors is: accounting knowledge helps: in setting prices by brand managers,
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The complete question is:
How is accounting knowledge beneficial to different business majors? Accounting knowledge helps ______.
in setting prices by brand managers
to forecast revenue by financial analysts
to assess the value of investing options by investment analysts
to determine supply chain options
on a scale of 1 to 3, with 3 being high, johanna’s brokerage has identified flood damage to the office building as a level 2 for likelihood of occurrence and a level 3 for severity of impact. is this a low-, medium-, or high-level risk?
The answer is High.
What are generic building blocks?The following are general traits of building blocks: A building block is a collection of features designed to address the demands of the business across an organization. The functionality can be accessed through public interfaces from a building block. A building block has the potential to work together with other interconnected building blocks.The foundational components of art as a whole are seven different types of artistic expression. The seven elements are line, color, value, shape, form, space, and texture.A building block is a collection of features designed to address the demands of the business across an organization. The functionality of a building block is accessible through public interfaces. A building block may work in conjunction with other, related building blocks.Nanoparticles, metal-organic frameworks, organic molecular structures, and supra-molecular complexes are utilized as building blocks for the bottom-up modular assembly of molecular architectures. Utilizing building blocks ensures exact control over the final composition of a molecule or (supra)molecular construct.On a scale of 1 to 3, with 3 being high, johanna’s brokerage has identified flood damage to the office building as a level 2 for likelihood of occurrence and a level 3 for the severity of impact. is this a low-, medium-, or high-level risk? High.
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most managers are engaged in passive scanning; however, they fail to turn their scanning activities into meaningful organizational . dynamism learning inertia scale structures
Most managers are engaged in passive scanning; however, they fail to turn their scanning activities into meaningful organizational Learning.
A successful training program will have significant advantages. Alternately, ineffective training may work against the objectives of the company. Training frequently fail in businesses, regardless of the size of the organization, for a number of reasons.
The following are the most common barriers to Organizational learning & training program:
1. Program Focus vs Organizational Focus- Employee focus is on completing the program or project, not on organizational development.
2. Limited resource- Many companies reduce their training and development budgets when the economy is bad.
3. Resistance to change- People who have been used to a certain method of operating for a long time tend to avoid trying something new. They do not wish to adopt new skills or procedures.
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caleb is not a professional gambler, but he does like to play slot machines and purchase lottery tickets from time to time. during the year, he won $2,000 while playing slots at lucky casino. caleb kept good records of his gambling winnings and losses, and he has documentation showing that, while he did have some winnings, his losses at the casino totaled $2,350. he also has records showing he spent an additional $200 for lottery tickets without winning anything. if caleb itemizes his deductions, how much can he claim for gambling losses on schedule a, itemized deductions?
If he won $2,000 while playing slots at lucky casino and kept good records of his gambling winnings and losses, and he has documentation showing that, while he did have some winnings. The amount he can claim for gambling losses on schedule a, itemized deductions is: $2,000.
Itemized deductionA person can tend to deduct their gambling losses when they itemize their deductions on Schedule A and as well kept a record of their winnings and losses.
Since caleb kept all record of his winnings and losses which in turn means that the amount of losses that can be deducted should not be higher than the amount of gambling winning he reported.
This means that caleb yearly losses will be deductible only up to the amount of his winnings which is $2,000.
Therefore If he won $2,000 while playing slots at lucky casino and kept good records of his gambling winnings and losses, and he has documentation showing that, while he did have some winnings. The amount he can claim for gambling losses on schedule a, itemized deductions is: $2,000.
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As mergers, acquisitions, and restructuring have increased in importance, agency theory has become more important in assessing whether.
As mergers, acquisitions, and restructuring have increased in importance, agency theory has become more important in assessing whether "shareholder goals are truly being achieved by managers in the long run".
What is agency theory?The important connections between principals and their relative agents are explained by the idea of agency theory. The principal, in the most basic sense, is someone who heavily relies on an agent to carry out specified financial decisions and transactions with potentially variable results.
There may be a variety of conflicts or disagreements due to the principal's reliance on the agent to make the best choice. Such links are explored in agency theory.
In terms of business, the principal is regarded as a shareholder, but the agent is seen as an executive of the company. Despite appearances, there is a close relationship between firm management and shareholders. The positions of each of them are significantly impacted by the other's activities.
The "agency dilemma" or "agency problem" are other names for agency theory.
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Many company employees work from home on a full-time basis. what technology do they commonly use to communicate securely with the organization's network?
Those who do get technology with mild-to-moderate COVID-19 will likely remain infectious no longer than 10 days after symptoms begin. Individuals with severe-to-critical illness stemming from a COVID infection likely aren't infectious 20 days after symptoms first began.
Technology is the application of scientific knowledge to the practical aims of human life or, as it is sometimes phrased, to the change and manipulation of the human environment.7 days.
The definition of technology is the application of scientific knowledge for practical purposes or applications. The technology uses scientific principles and applies them to change the environment in which humans live. Technology can also use scientific principles to advance industry or other human constructions.
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What+is+the+current+value+of+a+zero-coupon+bond+that+pays+a+face+value+of+$1,000+at+maturity+in+11+years+if+the+appropriate+discount+rate+is+12%
Current Value of Zero Coupon bond is $287.47.
Maturity amount =$1000
Number of Years to maturity =11 years
Discounting rate =12% Current Value of Zero Coupon Bond = Maturity amount × Present value factor at 11 years at 12%
Present value factor at 11 years at 12% =0.28747
Current Value of Zero Coupon bond =$1000 × 0.28747 =$287.47
Current Value is a method of accounting primarily based on the value of changing property on the costs that would be paid now, rather than at the charges they had been at first bought for contemporary value accounting can yield outcomes which might be materially different from traditional accounting based totally on historical fees.
The fair fee of the inventory is a subjective time period calculated the usage of the current financial statements, marketplace position, and feasible increase fee from a set of metrics. In comparison, the market fee is the cutting-edge percentage price at which the inventory or asset is traded.
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Is it correct to assume that total income equals total expenditure for the whole economy?
No, because the economy is able to borrow and thus spend more than it earns. An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources.
One's culture, values, education, technological advancement, history, social organization, political structure, legal system, and natural resources are all major determinants of an economy's processes. In other words, the economic realm is a social domain made up of connected human behaviors and exchanges that cannot exist independently.
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The observed sales for january, february, march and april are 62, 57, 64 and 64, respectively. what is the forecasted sales for may using 3-period moving averages method?
The forecasted sales for may use the 3-period moving averages method is 124.
Forecast for May =(120+136+116)/3 = 124
A forecast of sales allow each enterprise to make better commercial enterprise choices. It allows in usual commercial enterprise making plans, budgeting, and risk control. sales forecasting lets in companies to efficaciously allocate resources for future boom and control their cash float.
Forecast of a period with n period moving average = average of last n periods demand
Forecast for May =(120+136+116)/3 = 124
Answer 2: Forecast for May= 120
Period, t At, Demand Ft, Forecast
February, 1 120 116
March, 2 134 118.0
April, 3 114 126.0
May, 4 83 120.0
the formula to be used in Simple Exponential smoothing is
Ft+1= alpha*At + (1-alpha) Ft
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enter a value in each blank cell to get full credit for this exercise, and round all dollar amounts to the nearest whole dollar. enter any cash deficit with a minus sign. three-month cash budget (by month) name(s): dan and june kuryaki for: three months ending: march 31, 20xx january february march total for three months income dan’s salary $1,313 1,313 june’s salary 1,181 1,181 total income 2,494 expenses rent 450 450 utilities: central maine power 50 50 t-mobile 25 25 food 90 90 automobile 315 315 public transportation 200 200 insurance 0 0 parents’ loan 58 58 fun money 208 208 total expenses 1,396 1,621 cash surplus (deficit) 1,098 cumulative surplus (deficit) $1,098
The subsequent cash budget assumptions had been made earlier than developing the coins price range. They'll now not spend something for the following 3 months on fun money.
The car mortgage is still due, and they're paying the installment month-to-month
lease and different utility expenses are taken into consideration similar to the preceding year.
Public transportation is an price they spend monthly.
3-Month cash budget (by way of Month).
3-Month cash price range (by way of Month)
call(s) Pedro and Lucy McDermott
For: 3 months ending: March 31
January February March total for 3 Months
earnings
Pedro’s profits $ 1,313 $ 1,313 $ 1,313 $ 3,938
Lucy’s salary $ 1,181 $ 1,181 $ 1,181 $ 3,544
overall profits $ 2,494 $ 2,494 $ 2,494 $ 7,481
costs
lease $ 450 $ 450 $ 450 $ 1,350
Utilities:
Puget Sound power $ 50 $ 50 $ 50 $ 150
Verizon $ 25 $ 25 $ 25 $ seventy five
food $ ninety $ 90 $ ninety $ 270
vehicle loan $ 315 $ 315 $ 315 $ 945
Public transportation $ two hundred $ 2 hundred $ 2 hundred $ 600
coverage $ - $ - $ 225 $ 225
parents’ loan $ fifty eight $ fifty eight $ fifty eight $ 175
a laugh cash $ - $ - $ - $ -
overall charges $ 1,188 $ 1,188 $ 1,413 $ 3,790
coins surplus (deficit) $ 1,305 $ 1,305 $ 1,080 $ 3,691
Cumulative surplus (deficit) $ 1,305 $ 2,611 $ three,691 $ three,691
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You deposit $2,000 in a savings account that pays 10 percent interest, compounded annually. how much will your account be worth in 15 years?
You deposit $2,000 in a savings account that pays 10 percent interest, compounded annually. $8354.5 (2000 x (1+.10)^15) will your account be worth in 15 years.
If you borrow $100,000 at 5% interest compounded annually, you would owe $5,250 after the first year on a principal of $105,000. This method involves calculating and adding interest to an investment or loan once a year rather than for a longer period.
However, due to compounding, annual interest is typically charged at a greater rate. The invested amount has a 12-month growth rate instead of a monthly payout. Take advantage of it if you can receive the same interest rate for monthly installments as you can for annual payments, though.
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The marketing mix element that describes what a buyer exchanges with a seller in order to obtain a product is known as?
The marketing mix element that describes what a buyer exchanges with a seller in order to obtain a product is known as Globalization
The marketing mix is what?The term "marketing mix" refers to a group of procedures, or techniques, that a business use to sell its goods or services. Price, Product, Promotion, and Place are the 4Ps that make up a conventional marketing mix.
How does the global marketing mix work?An increasingly interdependent and integrated global economy is combined with the promotion and sale of goods and services through global marketing. It renders the businesses stateless and without boundaries.The 4Ps of marketing—product, pricing, place and promotion—present numerous difficulties when used in international marketing. We look at each P separately to try to identify any problems that may be associated with it.The product and service mix is one of the key components for today's global marketer. It is astounding how many different products and services are in demand in the age of globalization.To know more about Globalization visit:
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2. the higher the opportunity cost of attending college the more likely an individual will go to college. do you agree? explain your answer. (3 points)
It is accurate because the more the surplus a person earns by choosing an alternative option, the greater the opportunity cost. That in this instance would be skipping college.
Another factor contributing to the opportunity cost of attending college is money. Nowadays, the college narrative is so prevalent that people often fail to consider all the other options. Of course, these expenses aren't just related to the profession you chose.
The worth of the best alternative use of a person's time is measured along with the additional expenses that person incurs as a result of choosing to attend college.
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Why are systems for collaboration and social business so important, and what technologies do they use?
Systems for collaboration and social business is important for globalization. Collaboration and Social business enhance the innovation or the productivity of the business.
It also enhances the quality as well as the customer service.
Technologies which are used by the systems for collaboration and social business include, email or wikis or the virtual meetings.
Virtual worlds, cyberlockers, collab platforms, MS sharepoint and social networking sites are also included in the technologies which are used by the systems.
Social business is a business which is aimed at addressing a social cause. The investments which are made by the investors is entirely with a vision of contributing to the social welfare only and not for the profit entirely.
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In alphabetical filing, which name would appear first?
a. pipeline coastal group
b. pip pipes and plumbing services
c. pipe and drains co.
d. pipe fitters & plumbers services
In alphabetical filing, b. pip pipes and plumbing services
A service is an " act or use for which a patron, company, or government is inclined to pay." Examples consist of work carried out by barbers, medical doctors, lawyers, mechanics, banks, insurance groups, and so on. Public services are those that society as a whole can pay for.
Offerings are intangible monetary sports that require private interaction between the patron and the provider provider on the time of transport of the offerings. services need not contain any form of production or sale of products and are in particular supplied so one can satisfy individuals' wishes.
Services are varied in 3 agencies; business offerings, social services and personal services.
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placed an order for office supplies costing $2,000. supplier intends to deliver later in the month. purchased equipment that cost $30,000; paid $10,000 cash and signed a promissory note to pay $20,000 in one month. negotiated and signed a one-year bank loan, and then deposited $5,000 cash in the company’s checking account. hired a new finance manager on the last day of the month. received an investment of $10,000 cash from the company’s owners in exchange for issuing common shares. supplies [ordered in (a)] were received, along with a bill for $2,000.
The indication of the amount, accounts, and directions of effects of the transaction are given below for all the transactions on the radio station's accounting equation which include paying $10,000 cash and signing a promissory note to pay $20,000 in one month.
The accounts along with the amount and the direction of effect of the transactions is as follows:
No journal entry requiredDr: Equipment $30,00 Cr: Cash $10,000 & Note Payable (short term) $20,000Dr: Cash $5,000 Cr: Note Payable (short-term) $5,000No journal entry requiredDr: Cash $10,000 Cr: Contributed Capital $10,000Dr: Supplies $2,000 Cr: Accounts Payable $2,000Hence, the amount, accounts, and directions of the effects of the transaction are given above.
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