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Question - The general ledger of Falcon Cleaning Inc in the beginning of 2021 includes the following balances:
Accounts Debits Credits
Cash 20,000
Accounts receivable 8,000
Supplies 4,000
Equipment 15,000
Interest payable 5,000
Salaries payable 7,500
Common Stock 25,000
Retained Earnings 9,500
Total 47,000 47,000
Required - Record adjusting entries and post them in the T-accounts:
a. Accrued salaries at year end amounted to $1,100.
b. Accrued interest expense at year end amounted to $5,000.
c. Used up supplies worth of $2,800.
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?
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