Answer:
Debit Cash account $50,000
Credit Ordinary share $5,000
Credit Share Premium $45,000
Explanation:
When share issued are paid for at an amount above the par or ordinary value, the excess paid is known as share premium.
The share premium like the par or ordinary value is recognized in the balance sheet as a part of the owners equity.
For a stock unit at par value of $1 for which the issue price was $10,
the share premium per unit
= $10 - $1
= $9
Ordinary share value = $1 × 5000 = $5,000
Share premium amount = $9 × 5,000 = $45,000
Answer:
$1,500
Explanation:
The computation of the amount of dividend for a preference shareholder is shown below:
Dividend per year is
= (100 shares × $100 par) × 5%
= $500
As the preferred stock is cumulative, so the holders would receive past dividends i.e not distributed
From 2019 = $500
From 2020 = $500
From 2021 = $500
Total $1,500
False, Nathan should not include this in his budget.
When budgeting, there are several things that one should include such as:
- net income
- debt repayments
- food
- utilities
- insurance
- savings and others
Notice how one should include their net income not their gross income. Net income is what comes after tax and this is the disposable income that a person has and can spend from.
In conclusion, Nathan should only include his net income and as this commission is before taxes, he should not include it.
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The answer to the question above is letter D. If Natasha has a gross income of $66,429. And has an adjustment of $14,490 for her business losses, $3,584 for her business expenses and $4,813 for her retirement contribution plan. The total remaining income is $43,542.
