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ololo11 [35]
3 years ago
7

On June 17, the Lattern Company issued 120,000 shares of its $0.10 par value common stock in exchange for land. On the date of t

he transaction, the fair value of the common stock, evidenced by its market price, was $10 per share. The journal entry to record this transaction includes:Multiple ChoiceA. Debit: Land, $1,200,000.B. Credit: Cash, $1,200,000.C. Debit: Land, $12,000.D. No entry for this exchange.
Business
1 answer:
Aloiza [94]3 years ago
5 0

Answer:

The answer is A. Debit: Land, $1,200,000

Explanation:

The journal entry Lattern Company needs to record is:

Dr Land 1,200,000

Cr Common share 12,000

Cr Paid-in capital - Common share   1,188,000

As 120,000 shares is exchanged for the land and the share is traded in the exchange, the value of the land should be recorded at the market price of these 120,000 shares or 120,000 x 10 = $1,200,000.

Common share account is recorded at par value x number of shares issued = 0.1 x 120,000 = $12,000 while Paid-in capital-Common share account records the difference between market price and par value at the time of shares issuance or ( 10 - 0.1) x 120,000 = $1,188,000.

Thus, the correct answer is A. Debit: Land, $1,200,000

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2019 2018 2017 2016 2015 Sales $ 672,736 $ 439,697 $ 356,030 $ 248,972 $ 185,800 Cost of goods sold 352,273 230,192 188,636 130,
drek231 [11]

Answer:

                                      2019        2018     2017      2016     2015

Sales                              362           237      192         134        100

Cost of goods sold       365           238      195         135        100

Accounts receivable    254           202       191          114        100

Explanation:

Note: See the attached excel file for the table showing how the trend percents are calculated.

Trend percents, often known as index numbers, can be described as percents that are used for comparing financial data across time to a based year or period. This can be calculated using the following formula:

Trend percents = (Analysis year amount / Base year amount) * 100 ........ (1)

Using equation (1), the following table shows the trend percents computed as follows:

                                     2019         2018     2017      2016     2015

Sales                              362           237       192         134        100

Cost of goods sold       365           238       195         135        100

Accounts receivable     254           202       191          114        100

Download xlsx
4 0
3 years ago
Matt Newell, a former Air Force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views
Keith_Richards [23]

Answer:

Labor

Explanation:

Factor of production: There are several resources that are required in the process of production or running any business to meet the required goal of the business.

There are four factor of production:

  • Land
  • Labor
  • Capital.
  • Entrepreneurship.

In the given case, Matt Newell is an Entrepreneur as he has started a new helicopter tour company, for which he acquired land and capital from the loan, however, he has not to manage labor for his business. Labor is essential to run any business.

4 0
2 years ago
Will the grading period effect what college you will go to later on?<br> A (True)<br> B (False)
Kobotan [32]

Answer: A

Explanation:

8 0
2 years ago
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The owner of Hanson Manufacturing is considering the idea of establishing a smoke-free workplace and instigating an incentive pl
klemol [59]

Answer:

$2000

Explanation:

According to CDC research, each employee who smokes costs his or her organization approximately $2000 per year due to reasons such as;

• Smoke breaks at work which accumulate to reduce the amount of time spent doing productive work.

• Health related issues resulting from smoking that may cost the organization money or cause the employee to be absent from work (research shows that smokers are absent from work more than non smokers.

Therefore, for each smoker who quits smoking, Hanson Manufacturing will gain approximately $2000 in productivity.

7 0
3 years ago
What is a credit limit? AThe required payment to your credit card company. BHow many credit cards you can own. CThe amount of in
Zolol [24]
B how many credit cards you can own
7 0
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