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1 year ago

London corp. issued 1,000 shares of stock for $20 per share. what are the effects of this transaction?

1 answer:

8 0

Based on the fact that London Corp, issued 1,000 shares at $20 per share, the effects of this transaction are:

Increase in cash
Increase in common stock

<h3>What happens when stock is issued?</h3>

When stock is issued newly, the stock will be sold for cash which in this case is;

= 1,000 x 20

= $20,000

This means that cash in the company has increased.

Something else that will increase is the common stock. This is the account where the value of the issued stock will go to.

Find out more on stock issuance at brainly.com/question/25562729

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Everdeen Inc. has a 90-day operating cycle. If its average age of inventory is 35 days, how long is its average collection perio

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Answer:

8.6 days

Explanation:

The formula for average collection period

= Average received turnover ratio / 365 daya

= 90 × 35 / 365

= 8.6 days

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3 years ago

On January 1, 2017, Walker Sales issued $19,000 in bonds for $14,300. These are eight-year bonds with a stated rate of 13%,

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Answer:

$14,887.5

Explanation:

Carrying Value of the bond is the net of Face value and any amortised discount on the bond.

Face Value of the bond = $19,000

Issuance Value = $14,300

Discount Value = $19,000 - $14,300 = $4,700

This Discount will be amortized over the bond's life until the maturity on straight line basis.

Amortization in each period = $4,700 / (8x2) = $293.75 semiannually

Until December 31, 2017 two payment have been made and $587.5 is amortized in the two semiannual periods.

Un-amortized Discount = $4,700 - $587.5 = $4,112.5

Carrying value of the bond = Face value - Un-amortized Discount = $19,000 - $4,112.5 = $14,887.5

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3 years ago

A manufacturing company producing medical devices reported $59 million in sales over the last year. At the end of the same year,

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Answer:

The inventory TO is 3.6875

Explanation:

$\frac{Sales}{Average Inventory} = $Inventory Turnover$

where:

$$$Average Inventory=(Beginning Inventory + Ending Inventory)/2$

Considering there is not sufficient information to calculate the begining inventory <u>we are going to work only with the ending inventory </u>so:

$\frac{59,000,000}{16,000,000} = 3.6875$

The inventory TO is 3.6875 This means the company sales their inventory almost 4 times per year.

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3 years ago

A company is offering to pay a stadium for naming rights. If the administrative costs for this sponsorship are $78,000, and thes

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Answer:

The amount of $71,760 , is offered by the company for the stadium naming rights.

Explanation:

As the total cost for the sponsorship is $78,000 but the cost has 8% revenue for the naming sponsorship. Therefore,

= Amount × % of revenue

= $78,000 × 8%

= $6,240

In order to compute the amount which is offered to pay for the stadium rights, the revenue amount to be deducted from the administrative cost:

= Cost - Revenue

= $78,000 - $6,240

= $71,760

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3 years ago

You have recently been made a department head of the new regional office. In getting to know your departmental staff, you have n

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Answer:

Democratic leadership style

Explanation:

She can develop a democratic leadership style within her which can help her accomplish her tasks as a manager and also help her inculcate this very leadership style which can be beneficial for her to go higher the ladder in organizations management.

Democratic leadership style would help her show the inexperienced employee some route out to get skilled and follow subordinates to improve work. Collaborative working with the employees provides managers with much needed team dynamics. Also, democratic leadership styles makes managers gather much needed skills which are essential for the leaders of the organization.

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3 years ago