On september 5, opened checking accounts at second commercial bank and negotiated a short-term line of credit of up to $8,000,000 at the bank's prime rate (9.5% at the time). the company will pay no commitment fees. on october 1, borrowed $5 million cash from second commercial bank under the line of credit and issued a five-month promissory note. interest at the prime rate of 9% was payable at maturity. management planned to issue 10-year bonds in february to repay the note. received $2,000 of refundable deposits in december for reusable containers used to transport and store chemical-based products. for the september–december period, sales on account totaled $4,880,000. the state sales tax rate is 3% and the local sales tax rate is 3%. (this is a summary journal entry for the many individual sales transactions for the period.) recorded the adjusting entry for accrued interest.

James albemarle created a trust fund at the beginning of 2016. the income from this fund will go to his son edward. when edward reaches the age of 25, the principal of the fund will be conveyed to united charities of cleveland. mr. albemarle specified that 75 percent of trustee fees are to be paid from principal. terry jones, cpa, is the trustee. james albemarle transferred cash of $500,000, stocks worth $400,000, and rental property valued at $250,000 to the trustee of this fund. immediately invested cash of $360,000 in bonds issued by the u.s. government. commissions of $7,900 are paid on this transaction. incurred permanent repairs of $9,000 so that the property can be rented. payment is made immediately. received dividends of $8,000. of this amount, $3,000 had been declared prior to the creation of the trust fund. paid insurance expense of $4,000 on the rental property. received rental income of $10,000. paid $8,000 from the trust for trustee services rendered. conveyed cash of $7,000 to edward albemarle.

The cost of direct labor used in production is recorded as a? a. credit to work-in-process inventory account. b. credit to wages payable. c. credit to manufacturing overhead account. d. credit to wages expense.

Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. long-run economic growth is unlikely to be sustainable because of finite natural resources. in the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. finding alternatives to natural resources will be very important to long-term economic growth. in the modern economy, human and physical capital are generally less important in productivity than natural resources. in the 19th century, countries with the highest per capita gdp were nearly always abundant in minerals and productive farming land.