Libby Company purchased equipment by paying $6,800 cash on the purchase date and agreed to pay $6,800 every six months during the next four years. The first payment is due six months after the purchase date. Libby's incremental borrowing rate is 8%. The liability reported on the balance sheet as of the purchase date, after the initial $6,800 payment was made, is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor (s) from the tables provided.) Multiple Choice $52,583. $61,200. $54,400. $45,783.
Assume that Sallisaw Sideboards, Inc. had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions during April.
1. Issued common stock for cash, $5,000.
2. Provided services to customers on account, $2,000.
3. Provided services to customers in exchange for cash, $900.
4. Purchased equipment and paid cash, $4,300.
5. Paid April rent, $800.
6. Paid workers salaries for April, $700.
Consider the following data that identifies real gross domestic product (GDP) in comparison to the long-run trend of real GDP to answer the following questions:
Quarter Real GDP Long-Run Trend of Real GDP
(billions of dollars) (billions of dollars)
1 4,000 4,000
2 4,160 4,120
3 4,326 4,244
4 4,413 4,371
5 4,501 4,502
6 4,591 4,637
7 4,499 4,776
8 4,409 4,919
9 4,673 5,067
10 4,954 5,219
11 5,252 5,376
12 5,376 5,537
In what quarter did this economy enter a recession?
