Answer:
The correct option is D,credit to Preferred Stock for $1,600,000 and Paid-in Capital in Excess of Par-Preferred Stock for $320,000
Explanation:
The total par value of the preferred stock issue is $100 multiplied by 16,000 which gives $1,600,000 while the remaining $20 per share multiplied by 16,000 that gave rise $320,000 goes to the credit of paid-in capital in excess of par-preferred stock account.
Option A is wrong because the preferred has a par value of $100 hence the total cash proceeds cannot be posted to preferred stock account alone.
Option B is wrong because the excess of $20 per share cannot be posted to retained earnings since it is net income
Answer:
- Don't Chew Gum
- Listen Attentively
- Sound Enthusiastic and Sincere
- Use proper language and enunciate clearly
Explanation:
(Avoid Clarifying vague questions might be an answer but not sure. I'm sorry if I am wrong)
Answer:
Decrease by $1
Explanation:
Given:
Old data:
Q0 = 2,000 units
P0 = $20
Total revenue before change = 2,000 x $20 = $40,000
After change in Price.
Q1 = 2,100 units
P1 = $19
Total revenue After change = 2,100 x $19 = $39,900
Computation of Marginal Revenue:
Marginal Revenue = (P1 - P0) / (Q1 - Q0)
= ($39,900 - $40,000) / (2,100 - 2,000)
= -100 / 100
= $(-1)
Marginal revenue will decrease by $1
The maker. Hope this helps. :)
