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2 years ago

The entry to record the issuance of common stock at a price above par includes a credit to?

Business

1 answer:

Anton [14]2 years ago

3 0

The entry to record the issuance of common stock at a price above par includes credit to cash.

Common stock is a protection that represents ownership in a organization. In a liquidation, commonplace stockholders get hold of whatever property remain after creditors, bondholders, and favored stockholders are paid.

Common stock is a form of company fairness ownership, a kind of safety. The phrases balloting proportion and normal proportion also are used often out of doors of the us. they're called fairness stocks or regular shares inside the united kingdom and different Commonwealth nation-states.

For instance, if a employer pronounces a dividend of $10 million and there are 20 million shareholders, investors will acquire $0.50 for each commonplace share they personal.

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Graham, Inc.'s April bank statement shows an April 30 balance of $5,120. Prior to reconciliation, its books show a cash balance

Mars2501 [29]

Answer:

$5,570

Explanation:

The purpose of a bank reconciliation statement is to reconcile the difference between Cash Book balance and Bank Statement balance. Also it is used to check accuracy of Cash Book and the accuracy of Bank Statement.

Graham, Inc.'s April bank reconciliation statement is prepared as :

Graham, Inc.

Bank reconciliation statement as at April 30

Balance as per Bank Statement $5,120

Add outstanding lodgments $800

Add back error at the bank $115

Less unpresented checks ($465)

Balance as per Cash Book $5,570

therefore,

The reconciled cash balance at April 30 on the bank reconciliation should be $5,570.

4 0

3 years ago

Each month a company can rent capital for $7.500 per unit and can hire workers for $2.500 each Currently me company is using 4 u

Sophie [7]

Answer:

Please see attachment

Explanation:

Please see attachment

8 0

3 years ago

Free points if ur a simp

Digiron [165]

Answer:simp

Explanation:

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4 years ago

Read 2 more answers

Get Smart University is contemplating an increase in tuition to enhance revenue. If GSU feels that raising tuition would enhance

AlladinOne [14]

If GSU feels that raising tuition would enhance revenue, it is assuming that the demand for university education is inelastic.

The quantity of a good that consumers are willing and able to buy at different prices during a specific time period is known as demand in economics. The demand curve is another name for the relationship between price and quantity demand.
A change in demand whose percentage is less than a change in price. Demand is said to be inelastic, for instance, if the price of a good increases by 25% but drops in demand by just 2%.
When there is a small change in the quantity demanded when the price changes, a good or service has inelastic demand. The term "price inelasticity of demand" is another name for this. An example of inelastic demand is gasoline, where individuals generally buy the same amount even when prices rise.

Thus this is the answer.

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4 0

2 years ago

3. Assume that the Appliance Division is operating at 75 percent capacity. The Manufactured Housing Division is currently buying

OverLord2011 [107]

This question is incomplete, the complete question is;

Transfer Pricing: Various Computations

Corning Company has a decentralized organization with a divisional structure. Two of these divisions are the Appliance Division and the Manufactured Housing Division. Each divisional manager is evaluated on the basis of ROI.

The Appliance Division produces a small automatic dishwasher that the Manufactured Housing Division can use in one of its models. Appliance can produce up to 20,000 of these dishwashers per year. The variable costs of manufacturing the dishwashers are $98.The Manufactured Housing Division inserts the dishwasher into the model house and then sells the manufactured house to outside customers for $73,000 each. The division's capacity is 4,000 units. The variable costs of the manufactured house (in addition to the cost of the dishwasher itself) are $42,600.

Required:

Assume each part is independent, unless otherwise indicated.

1) Assume that all of the dishwashers produced can be sold to external customers for $320 each. The Manufactured Housing Division wants to buy 4,000 dishwashers per year. What should the transfer price be?

2) Refer to Requirement 1. Assume $24 of avoidable distribution costs. Identify the maximum and minimum transfer prices.

3) Assume that the Appliance Division is operating at 75 percent capacity. The Manufactured Housing Division is currently buying 4,000 dishwashers from an outside supplier for $290 each. Assume that any joint benefit will be split evenly between the two divisions. What is the expected transfer price?

Answer:

a) The transfer price TP is the market ( $ 320 )

- minimum transfer price : $ 296

- maximum transfer price : $ 320

c) the expected transfer price is $ 194

Explanation:

Given the data in the question;

a) What should the transfer price be?

The transfer price TP is the market ( $ 320 ) as all the dishwashers produced will be sold to the external customers for $ 320 .

b) Identify the maximum and minimum transfer prices?

Refer to question 1 above and assuming $24 of avoidable distribution costs.

the maximum and minimum transfer prices will be;

- minimum transfer price : $ 320 - $ 24 = $ 296

- maximum transfer price : $ 320

c) What is the expected transfer price?

given that; the variable costs of manufacturing the dishwashers are $98.

The Manufactured Housing Division is currently buying 4,000 dishwashers from an outside supplier for $290 each.

so potential gain = $290 - $98

= $ 192

thus, share of gain of each division will be;

⇒ $ 192 / 2 = $ 96

so the transfer price will be;

⇒ $ 98 + $ 96

= $ 194

Therefore, the expected transfer price is $ 194

4 0

3 years ago