Answer:
The answer is given below;
Explanation:
Preferred Stock Dr.$39,000,000
Common Stock Cr.$33,000,000
Paid in capital in excess of par-Common stock (39,000,000-33,000,000) Cr.$6,000,000
As the book value of preferred stock is greater than the price paid at the time of conversion into common stock,therefore excess amount is paid in capital in excess of par for common stocks.As the preferred stock is reduced by their book value,therefore it is debited and common stock is credited with its cost.
Answer:
Chuck must be less than $260,000
Explanation:
The economic decision rule is: Do it if that marginal benefit exceeds the marginal cost and Since Chuck was unwilling to purchase the house at $260,000, we can deduce that the marginal benefit of purchasing the house must be less than $260,000 due to the fact that the seller turns down the offer but says she will sell the house for $260,000.
Answer and Explanation:
As we know that
The assets, expenses contains debit balance while the liabilities, revenues and stockholder equity contains credit balance
So based on this, the classifications are as follows
Particulars Type of account Normal balance Debit or credit Reason
a. Land Asset debit debit resources on the owners hand
b. Cash Asset debit debit resources on the owners hand
c. Legal Expense = expense debit debit consumption of cost
d. Accounts Receivable Asset debit debit resources on the owners hand
e. Dividends = Equity debit debit distribution made to owners
g. Notes Payable = Liability credit credit obligation made to creditors
h. Common Stock = Equity credit credit investment done by the owners
Answer:
The correct option is these statements are true
Explanation:
Margin of safety is the measure of the reduction in sales that needs to be recorded before a company makes no profit,invariably the difference the planned sales volume and the sales volume required to break even(makes no profit no loss).
The margin of safety can be expressed in volume,say 100 units of a product,in dollar terms ,say each product sells for $100 each,the margin of safety becomes $10,000($100*100) and can also be expressed in percentage terms depending on the way management wants it stated.
Answer:
The answer is below
Explanation:
Probability distribution are statistical function that shows all the possible outcomes of a random variable within a given range of values.
a) The mean (
) of a probability distribution of a discrete random variable is:
![\bar x=\Sigma\ [xP(x)]](https://tex.z-dn.net/?f=%5Cbar%20x%3D%5CSigma%5C%20%5BxP%28x%29%5D)
= (0 * 0.8) + (1 * 0.15) + (2 * 0.04) + (3 * 0.01) = 0.26
b) The standard deviation (σ) of a probability distribution of a discrete random variable is:
![\sigma=\sqrt{ \Sigma\ [(x-\bar x)^2*P(x)]}\\\\\sigma=\sqrt{(0-0.26)^2*0.8+(1-0.26)^2*0.15+(2-0.26)^2*0.04+(3-0.26)^2*0.01} \\\\\sigma=0.577](https://tex.z-dn.net/?f=%5Csigma%3D%5Csqrt%7B%20%5CSigma%5C%20%5B%28x-%5Cbar%20x%29%5E2%2AP%28x%29%5D%7D%5C%5C%5C%5C%5Csigma%3D%5Csqrt%7B%280-0.26%29%5E2%2A0.8%2B%281-0.26%29%5E2%2A0.15%2B%282-0.26%29%5E2%2A0.04%2B%283-0.26%29%5E2%2A0.01%7D%20%5C%5C%5C%5C%5Csigma%3D0.577)
