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sergiy2304 [10]
2 years ago
8

bombeck inc. has the following transactions during august of the current year. aug. 1: opens an office as a financial advisor, i

nvesting $5,000 in cash in exchange for common stock.
Business
1 answer:
Paha777 [63]2 years ago
5 0

The journal entries required are as follows:

Dr. Cash  $5,000

Cr. Stockholder's equity $5,000

What is appropriate journal entries for the $5,000?

The financial advisor is investing in his new company, Bombeck Inc, in other words, the cash of the company would increase by $5,000 whereas the equity capital also increases by the same amount.

In essence, we would debit the receiving account, cash and credit the giving account, stockholder's equity in order to effect the necessary journals in respect of the common stock investment, upon the opening of the office.

Find out more about stockholder's equity on:brainly.com/question/24696643

#SPJ1

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Parkway Company incurred $126,000 in material costs during July. Additionally, the 12,000 units in the Work-in-Process Inventory
IRINA_888 [86]

Answer:

$ 13.167 / unit

Explanation:

Data provided:

Beginning material cost = $ 126,000

Number of units in work in progress = 12,000 units

Material cost assigned = $ 32,000

thus,

the total material cost involved = $ 126,000 + $ 32,000 = $ 158,000

Now,

the material cost per equivalent unit = Total material cost involved / number of units

on substituting the values, we have

the material cost per equivalent unit = $ 158,000 / 12,000

or

= $ 13.167 / unit

7 0
3 years ago
On January 1, 2020, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January
Leno4ka [110]

Answer:

Discount on bonds issuance = $15750

Explanation:

A bond is issued at a discount when the issue price of the bond is less than the face value of the bond. This usually happens when the coupon rate paid by the bond is less than the market interest rate. To calculate the amount of discount on bonds issuance, we simply deduct the issue price from the face value of the bond. Thus,

Discount on Bonds = Face value - Issue price

As we know the face value of the bonds is $700000 and the issue price is $684250, we can calculate the discount on issuance to be,

Discount on bonds issuance = 700000 - 684250

Discount on bonds issuance = $15750

7 0
3 years ago
When the required return is equal to the coupon rate, the bond value is▼equal togreater thanless thanthe par value. In contrast
-BARSIC- [3]

1) Answer: When the required return is equal to the coupon rate, the bond value is equal to the par value,

2) if the required return is less than the coupon rate the bond will sell at a premium.

Explanation:

1) The reason for this that the required return is the market or investors required rate of return for a particular bond, when the required rate and coupon rate are equal it means that the investor is getting the return he wants in coupon payments, therefore the investor will be willing to buy the bond on par value, as he is getting his required return in the form of coupon payments.

2) When the required return is less than the coupon rate the investor is getting more in coupons than he required from the bond so the bonds price will be higher than par so that the return from the coupons become equal to the required rate of return. Thats why when a bonds required return is less than the coupon it sells on a premium.

3 0
3 years ago
The latitude value of Toronto is 43.70 degrees, and the longitude value is 79.40 degrees. The latitude value of Melbourne is -37
olya-2409 [2.1K]
The right answer for the question that is being asked and shown above is that: "The two cities are degrees apart in latitude." <span>The latitude value of Toronto is 43.70 degrees, and the longitude value is 79.40 degrees.</span>
7 0
3 years ago
The acquisition value attributable to the non-controlling interest at January 1, 2019 is: A) $23,400. B) $24,000. C) $24,900. D)
erastova [34]

Answer:

D) $26,000

Explanation:

The computation of the acquisition value associated with the non-controlling interest is shown below:

= Cash ÷ acquiring percentage × non- owning percentage

= $234,000 ÷ 0.90 × 0.10

= $26,000

It is computed by simply applied the above formula so that the acquisition value in case of non controlling interest could arrive and the same is to be considered

7 0
3 years ago
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