Answer: $1,717,200
Explanation:
The amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend will be:
= 15% × 159,000 × $72
= 0.15 × 159,000 × $72
= $1,717,200
Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a <u>failed diversification effort</u>.
<u>Explanation</u>:
Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:
- failing to integrate acquisitions
- unable to understand how the acquired organization’s assets would fit with their own lines of business
- paying high premium for the target's common stock
- not acting in best interest of shareholders
The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.
Answer:
The discount on the bonds issuance is $9,138.00
Explanation:
discount on bonds at issuance=bonds face value-bonds cash proceeds
bonds face value is $180,000
bonds cash proceeds =$170,862
Discount on bonds at issuance=$180,000-$170,862
Discount on bonds at issuance=$9,138.00
The necessary journal entries to record the bonds issuance are follows:
Dr Cash $170,862.00
Dr discount on bonds issue $9,138.00
Cr Bonds payable $180,000
The discount on the bonds would amortized over relevant years
Answer:the correct answer is A. For the 11th worker, the marginal profit is $600.
Explanation:
10 men 20 vanities per week
11 men 22 vanities per week
1 man more 2 vanities more
If the company uses 1 man more produces 2 vanities more, so the company spends $1000 on the extra man and makes 2*$800= $1,600 (for two extra vanities). For the 11th worker, the marginal profit is = $1600-$1000= $600
Answer and Explanation:
The computation of the total budgeted selling and administrative expenses is shown below;
Utilities expense $2,800
Administrative salaries $100,000
Sales commissions 5 % of sales i.e. 5% of $860,000 $43,000
Advertising $20,000
Depreciation on store equipment $50,000
Rent on administration building $60,000
Miscellaneous administrative expenses $10,000
total budgeted selling and administrative expenses $285,800
