Answer:
bonds are fixed income instruments
Explanation:
Bonds are commonly referred as fixed income financial instruments as the coupons ( cash payments are predetermined upon issuance of the bond to the public based on the bond issuance rate). Bonds are issued by corporate organisations and governments to raise funds to finance development or expansion as the case maybe. Stocks are variable and determined from profit realized by the company at the end of each financial year.
Explanation:
the factors or elements in a firm's immediate environment which affect its performance and decision-making; these elements include the firm's suppliers, competitors, marketing intermediaries, customers and publics.
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Answer:
B) debit Retained Earnings $ 200,000 and credit Common Stock $ 200,000
Explanation:
The dividends will increase the common stock account and decrease retained earnings. Dividends are always paid with retained earnings.
Since this is a large stock dividend (40% of new stocks are going to be issued), the transaction must be recorded at par value.
The total dividends declared = 50,000 shares x $10 x 40% = $200,000
The journal entry should be:
Dr Retained earnings 200,000
Cr Common stock 200,000
Answer:
See below
Explanation:
Tandy Incorporated
Balance sheet (Partial)
At December 31,
Stockholder's equity :
Contributed capital :
Common stock
$123,000
Preferred stock
$7,200
Additional paid in capital common stock
$123,000
Additional paid in capital preferred
$12,000
Total contributed capital
$265,200
Retained earnings
$40,900
Total stockholder's equity
$306,100
Workings:
Common stock = Number of common shares issued × Par value of one common share
= 20,500 × $6
= $123,000
Preferred stock = Number of preferred shares issued × Par value of one preferred share
= 1,200 × $6
= $7,200
Additional paid in capital , common stock = Number of shares issued × ( issue price of one share - Par value of one share)
= 20,500 × ($12 - $6)
= 20,500 × $6
= $123,000
Additional paid in capital , preferred stock = Number of shares issued × (Issue price of one share - Par value of one share)
= 1,200 × ($16 - $6)
= 1,200 × $10
= $12,000
Answer:
Effect on income= $40,275 increase
Explanation:
Giving the following information:
The Clyde Corporation's variable expenses are 25% of sales.
Increase in fixed costs= $18,900
Increase on income= $78,900
T<u>o calculate the effect on income, we need to use the following formula:</u>
Effect on income= increase in contribution margin - increase in fixed costs
Effect on income= (78,900*0.75) - 18,900
Effect on income= $40,275 increase