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raketka [301]
4 years ago
11

Jackson Corporation issued a 100% stock dividend of its common stock, which had a par value of $.01, and a market value of $123

before the dividend and $62 after the dividend. At what amount should retained earnings be capitalized for the additional shares issued?
Business
1 answer:
shepuryov [24]4 years ago
4 0

Answer:

par value = $0.01 per stock

Explanation:

Retained earnings are capitalized to measure how the issuance of new stocks affects existing outstanding shares. In this case or any other case, retained earnings will be capitalized at par value, since the market value of the shares doesn't affect it.

If new shares were issued in an unrelated operation, the accounts that would be affected are common stock and additional paid in capital, not retained earnings.

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How do you determine the acid-test ratio? The sum of cash and short-term investments divided by short-term debt. Current assets
Alex Ar [27]

Answer: The sum of cash, short-term investments and net receivables divided by current liabilities

Explanation: The acid test ratio, also known as the quick ratio, is a liquidity ratio that is used to determine the ability of a company to pay its current liabilities if it rises immediately. It is considered to be more stringent ratio than the current ratio.

It is concluded by dividing those current assets that can be converted into cash immediately with the current liabilities of the company.

Therefore, from the above we can conclude that the correct statement is D.

3 0
3 years ago
4. Problems and Applications Q4 For each of the following statements, indicate which argument for restricting trade is being uti
harkovskaia [24]

Answer:

Statements      Arguments

A                      The Infant-Industry Argument

B                      The Protection-as-a-Bargaining-Chip Argument

C                      The Jobs Argument

D                      The Unfair-Competition Argument

Explanation:

The Jobs Argument:  Domestic jobs need to be protected for the good of the national economy, according to this argument.

The National-Security Argument: Some products and services are, by their nature, issues reserved under national security.  To expose the internal security systems of a nation may have untold consequences.

The Infant-Industry Argument: Nascent industries require domestic protection from foreign competitors if they must grow to competitive levels.

The Unfair-Competition Argument: This is more pronounced in developing countries without the manufacturing facilities to compete fairly with developed economies.

The Protection-as-a Bargaining-Chip Argument is argues that trade restrictions may be imposed to force other countries to reverse or remove trade restrictions.

4 0
3 years ago
Tanner Service Company reported an annual sales revenue of $560,000 in 2019. During the year, accounts receivable decreased from
otez555 [7]

Answer:

$563,700

Explanation:

Calculation of cash is as seen below.

Sales revenue. $560,000

Add: Decrease in accounts receivable ($22,500 - $18,800) $3,700

Cash received from customers. $563,700.

Note: other information given in the question are not relevant for the computation of cash received from customers for the year.

Therefore, cash received from customers for the year is $563,700

4 0
3 years ago
Basecamp is based in Chicago, Illinois. According to the laws of the state of Illinois, employers and employees have the right t
Svetach [21]

If the laws that are existent in the state of Chicago gives the right to end an employment relationship at any time, then Basecamp is headquartered at  an employment at will state.

<h3>What is  an employment at will state?</h3>

This is a term that is used to refer to the states where people can terminate contracts at any time that they want.

The employer can decide to terminate that of the worker when he wants to. The worker on the other hand may decide to call it quits whenever they want to. The only reason that this cannot stand is illegality.

Read more on employment here:

brainly.com/question/1446509

4 0
2 years ago
What are 2 ways to add a customer to QuickBooks Online?
nexus9112 [7]

Answer:

-go to sales

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Explanation:

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3 0
3 years ago
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