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2 years ago

The par value of common stock must always be equal to its market value on the date the stock is issued.

Business

1 answer:

Lemur [1.5K]2 years ago

5 0

TRUE, the par value of the common stock must always be equal to its market value on the date the stock is issued

The par value of the common stock must always equal the market price on the date the stock was issued. The issuance of common stock affects both paid-in capital and retained earnings. If the preferred stock has a par value of $50 and the dividend is estimated at 8%, the dividend per share will be $4.

Par value is the value of one share of common stock as set forth in the company's articles of incorporation. It usually has nothing to do with the actual value of the stock. In reality it is often lower. Share certificates issued against the shares purchased show the par value. When approving shares, the company can choose whether to assign a par value.

Learn more about par value here:brainly.com/question/25765493

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Delta Diamonds had 5 one-carat diamonds available for sale this year: 1 purchased June 1 for $500, 2 purchased July 9 for $550 e

NISA [10]

Using a periodic specific identification, Delta Diamonds' Inventory after the December 24 sale is <u>$2,250</u>.

<h3>What is the specific identification method?</h3>

The specific identification method is an inventory method that identifies specific inventories sold and uses their specific costs in valuing the cost of goods sold.

<h3>Data and Calculations:</h3>

Date Units Unit Cost Total Balance

June 1 1 $500 $500 $500

July 9 2 $550 $1,100 $1,600

Sept. 23 2 $600 $1,200 $2,800

Dec. 24 -1 $550 $550 $2,250

Thus, using a periodic specific identification, Delta Diamonds' Inventory after the December 24 sale is <u>$2,250</u>.

Learn more about specific identification methods at brainly.com/question/25056275

4 0

2 years ago

Becca and Bob own a car rental business. Becca contributes 75 percent of the capital but does only 20 percent of the work, while

ale4655 [162]

Answer: Limited liabilities and partnerships

Explanation:

Limited liabilities mean that the partners within the firm are only liable to pay off their debts with the amount they had invested as capital in the company. Partnership is an agreement between certain number of partners to share the profit and loss of the company. In this case since there is a 50/50 allocation of profits and there are only 2 partners therefore, this is a limited liability partnership.

4 0

3 years ago

As of December 31, Year 1, Flowers Company had total assets of $220,000, total liabilities of $66,000, and common stock of $110,

liberstina [14]

Answer:

(b) After-closing balance in the Retained Earnings account on December 31, Year 1,

Total Stockholder's equity = Total assets - Total liabilities

= $220,000 - $66,000

= $154,000

After-closing balance of Retained Earnings = Total Stockholder's equity - Common stock

= $154,000 - $110,000

= $44,000

(a) Before-closing balance in the Retained Earnings account on December 31, Year 1.

Net Income = Revenue - Expenses

= $40,000 - $23,000

= $17,000

Before-closing balance of Retained Earnings:

= After-closing balance of Retained Earnings + Dividend paid - Net Income

= $44,000 + $3,200 - $17,000

= $30,200

(c) Before-closing balances in the following accounts:

Revenue = $40,000

Expenses = $23,000

Dividend = $3,200

(d) After-closing balances in the following accounts:

Revenue = $0

Expenses = $0

Dividend = $0

Because revenue and expenses are transferred to income statement and dividend are transferred to retained earnings.

6 0

3 years ago

Identify whether each of the following transactions will take place in the factor marketLOADING... or in the product marketLOADI

Debora [2.8K]

Answer:

a. George buys a Tesla Model S.

Product market. Demanded by household and supplied by the firm

b. Tesla increases employment at its Fremont plant.

Factor market. Demanded by firm and supplied by the household

c. George works 20 hours per week at McDonald’s.

Factor market. Demanded by firm and supplied by the household

d. George sells the land he owns to McDonald’s so that it can build a new restaurant.

Factor market. Demanded by firm and supplied by the household

Explanation:

a. George buys a Tesla Model S.

The transaction took place in the product market.

The good was demanded by household

The good was supplied by the firm

b. Tesla increases employment at its Fremont plant.

The transaction took place in the factor market.

The labor was demanded by firm

The labor was supplied by the household

c. George works 20 hours per week at McDonald’s.

The transaction took place in the factor market.

The labor was demanded by firm

The labor was supplied by the household

d. George sells the land he owns to McDonald’s so that it can build a new restaurant.

The transaction took place in the factor market.

The factor of production was demanded by firm

The factor of production was supplied by the household

6 0

3 years ago

Season tickets for the Dingos are priced at $340 and include 17 home games. An equal amount of revenue is recognized after each

Vsevolod [243]

Answer:

Season tickets sold = $1,819,000 / $340

Season tickets sold = 5,350 tickets

Games played by the end of October = [$1,284,000 / ($1,819,000 / 17 games)]

Games played by the end of October = $1,284,000 / 107,000

Games played by the end of October = 12 games

Journal Entry to record initial sale of ticket

Accounts title Debit Credit

Cash $1,819,000

Unearned Ticket revenue $1,819,000

Journal Entry to record first home game revenue

Accounts title Debit Credit

Unearned Ticket revenue $107,000

Ticket revenue (earned) $107,000

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3 years ago