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Question - Equipment costing $335,000 was purchased on July 1, 2017. Cash in the amount of $135,000 was paid at the time of purchase; the vendor accepted revenue anticipation notes in the amount of $200,000 to finance the remainder of the equipment. Of this amount, $100,000 of the notes will be payable on July 1, 2018; the other $100,000 will be payable on July 1, 2019. All notes bear interest at the rate of 4 percent per year.
Required - Record only the purchase and the related payment of cash and issuance of notes at this time; interest will be recorded in a later transaction.
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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