The following purchase transactions occurred during March for Rehoboth, Inc.:

Maso Company recorded journal entries for the issuance of common stock for $200,000, the payment of $65,000 on accounts payable,

cricket20 [7]

Answer:

Increase of $95,000

Explanation:

Stockholder equity: It records the issue of shares, retained earnings, and deduct the dividend amount if declared.

The expenses which are related to the business is directly or indirectly affect the stockholder equity.

So, the net effect is shown below:

Issuance of common stock = $200,000

Less - Payment of salaries expense = $105,000

So, the net effect would be equal to

= $200,000 - $105,000

= $95,000

The accounts payable does not affect stockholder equity. So, it would not be considered.

This $95,000 would increase stockholder equity.

7 0

3 years ago

Strait Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total

AlekseyPX

Answer:

c. $52,670

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per desk = (High cost - low cost) ÷ (Highest production - lowest production)

= ($82,700 - $63,300) ÷ (3,500 desk - 1,240 desk)

= $19,400 ÷ 2,260 desk

= $8.58

Now the fixed cost equal to

= High cost - (High production × Variable cost per desk)

= $82,700 - (3,500 desk × $8.58)

= $82,700 - $30,030

= $52,670

6 0

3 years ago

Records show that 5% of all college students are foreign students who also smoke. it is also known that 50% of all foreign colle

miskamm [114]

10% Simplest way to solve this problem is realizing that if 50% of all foreign students smoke, then that also means that 50% of all foreign students don't smoke (100% - 50% = 50%). So for every smoking foreign student you see, there's a non-smoking foreign student. So just double the number of smoking foreign students to get the total number foreign students. So 5% * 2 = 10%

4 0

3 years ago

On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was c

lutik1710 [3]

Answer:

$207,800

Explanation:

Date Expenditure Weight Average

January 1 $980,000 12/12 $980,000

March 31 $1,580,000 9/12 $1,185,000

June 30 $1,256,000 6/12 $628,000

Sept. 30 $980,000 3/12 $245,000

Dec. 31 $780,000 0/12 $0

Total $3,038,000

Calculation of average interest rate for general debt

Amount Rate Interest

Bonds $8,000,000 11% $880,000

Long term rate $2,000,000 6% $120,000

Total $10,000,000 $1,000,000

Average interest rate = $1,000,000 / $10,000,000

Average interest rate = 10%

Calculation of interest capitalized

Note: General debt = $3,038,000 - $2,400,000 = $638,000

Average Interest rate Capitalized interest

Specific debt $2,400,000 6% $144,000

General debt $638,000 10% $63,800

Total $207,800

7 0

3 years ago

Equipment was purchased at a cost of $52,000. It had an estimated useful life of seven years and a residual value of $3,000. Ass

Gnesinka [82]

D) a debit to gain on Sale of Asset

The transaction is going to be between Accumulated Depreciation account and Gain on Sale of Asset. The Depreciation account would be credited whiles the Gain on Asset account is Debited.

Explanation:

Cost = $52,000

Estimated useful life = 7 years

Residual value = $3,000

Depreciation for each year

($52,000 -$3,000) / 7 years = $7,000

Accumulated Depreciation as at year 6

$7,000 * 6 years = $42,000

Carrying amount as at the end of year 6 is

$52,000 - $42,000 = $10,000

Sales price is $14,000.

Profit or loss on sale

(sales price - carrying amount)

$14,000 - $10,000 = $4,000

Therefore the profit/gain on sale of asset of $4,000 will be debited in the gain on sale of asset account.

5 0

3 years ago