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Katy started trading on 1 January 2020. Her first set of accounts will cover the year to December 2020. She immediately entered into an 18-month lease for rent and had to pay the whole amount of £45,000 on 1 January 2020. She also entered into an agreement with an advertising agency who will provide her with promotional materials for a cost of £8,800 per year. This amount is to be paid in arrears in two equal instalments on 1 July 2020 and 1 January 2021.
Required:
Problem 1: Make ledger accounts for rent and advertising for the year ending 31 December 2020 clearly showing the income statement charges for these expenses.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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Create a cost-benefit analysis to evaluate the project
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Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
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