Answer: Depreciate
Explanation:
The Economist is a widely respected financial and economic magazine which means that their articles can cause movements in the market especially when backed up by analysts.
The Economist believes that the Tunisian Dinar will rise relative to the Peruvian Sol, this means that the Peruvian Sol will depreciate against the Tunisian Diner. Some people and entities holding Peruvian Sol assets will try to offload it so that they do not suffer losses.
This increase in supply and reduction in demand for the Peruvian Sol will lead to it depreciating.
Answer:
a. Indigo do not elect fair value option
Journal entries
Date Description DR CR
2020
Jan 1 Bonds-available for sale asset $11,700,000
Cash book 11,700,000
<em>Being the amount paid on acquisition </em>
Dec 31
Interest receivable (4%*11,700,000) 468,000
Income statement 468,000
<em> Being the interest due on the bond at the year end </em>
<em />
<em>b. </em> Indigo elect the fair value option
Date Description DR CR
2020
Jan 1 Bond-available for sale asset 11,700,000
cash book 11,700,000
Being the amount paid on acquisition
Dec 31 Interest receivable 468,000
Income statement 468,000
Being the interest due on the bond at the year end
Dec 31 Bond 687,000
Revaluation surplus 687,000
Being the excess of fair value over the book value
Explanation:
Answer:
1. Debit
2. Debit
3. Credit
4. Credit
5. Debit
6. Debit
7. Credit
8. Credit
9. Credit
10. Credit
Explanation:
In Financial accounting, debit refers to an entry made which would either increase an expense or asset account; therefore, decreasing an equity or liability account.
Credit refers to an entry made which would either increase an equity or liability account; therefore, decreasing an expense or asset account.
Generally, debit is an accounting entry which is made to the left of an account while credit is an accounting entry which is made to the right of an account. The standard rule is that, when a credit decreases an account, the opposite account should be increased with a debit.
1. Decrease in Notes Payable: Debit
2. Increase in Dividends: Debit.
3. Increase in Common Stock: Credit
4. Increase in Unearned Rent Revenue: Credit
5. Decrease in Interest Payable: Debit
6. Increase in Prepaid Insurance: Debit
7. Decrease in Salaries and Wages Expense: Credit
8. Decrease in Supplies: Credit
9. Increase in Revenues: Credit
10. Decrease in Accounts Receivable: Credit
Its recommended to save at least 20%