Answer:
B. $11,000 increase in Assets; No effect on Liabilities; $11,000 increase in Stockholders’ Equity
Explanation:
As the company received cash in exchange for the common stock. So, it affect the accounting equation which is shown below:
Total Assets = Total liabilities + Total stockholder equity
The journal entry is shown below for better understanding:
Cash A/c Dr XXXXX
To Common stock XXXXX
To Additional Paid-in capital - in excess of par XXXXX
(Being cash is received)
So, it would not impact the total liabilities
Answer:
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Answer:
Therefore government purchases is $300 million
Explanation:
In this case, GDP is the sum of consumption, investment, and government purchases. To calculate the value of consumption we use the formula:
CC + II + GG = Y
GG = Y - CC - II
Where:
government purchases = GG
taxes minus transfer payments (TT) = $260 million
consumption (CC) = $300 million
investment (II) = $300 million
Y = country GDP = $800 million
GG = Y - CC - II
Substituting:
GG = $800 million - $300 milllion - $300 million
GG = $200 million
Therefore government purchases is $300 million
Answer:
$400,000
Explanation:
Calculation to determine the differential revenue if Wilson Co. were to eliminate the Tennis segment
Differential revenue= $200x2,000 units
Differential revenue= $400,000
Therefore the differential revenue if Wilson Co. were to eliminate the Tennis segment will be $400,000
