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3 years ago

On May 10, Sheffield Corp. issues 2,500 shares of $5 par value common stock for cash at $12 per share.

Business

1 answer:

Murljashka [212]3 years ago

3 0

Answer:

Explanation:

The journal entry to record the issuance of common stock is shown below:

Cash A/c Dr $30,000 (2,500 shares × $12)

To Common Stock $12,500 (2,500 shares × $5)

To Additional Paid-in Capital in excess of par - Common Stock $17,500

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

While issuing the stock, we debited the cash account and credited the common stock and additional paid-in capital account

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John's job provided the main income for his family. He died unexpectedly and had no life insurance. The probable financial conse

Leto [7]

Answer:

An increase in income and expenses

Explanation:

When the main provider of a family dies and he/she doesn't have any type of life insurance, then the whole family's economy will suffer. Their total income will probably plummet. Besides losing John's income, his family must all the expenses related to his death, e.g. burial. As a terrible consequence, John's family will see their standard of living decrease.

8 0

3 years ago

Suppose that when Sue’s disposable income is $10,000, she spends $8,000, and when her disposable income is $20,000, she spends $

soldier1979 [14.2K]

Answer:

The correct answer is: 2,000; 0.4

Explanation:

We can write the initial consumption function as,

C = a + bY

8,000 = a + 10,000b

a = 8,000 - 10,000b

The new consumption function is,

14,000 = a + 20,000b

Putting value of a in this function

14,000 = 8,000 - 10,000b + 20,000b

14,000 - 8,000 = 10,000b

b = $\frac{6,000}{10,000}$

b = 0.6

Putting the value of b in the initial function,

8,000 = a + 10,000 $\times$ 0.6

a = 8,000 - 6,000

a = $2,000

The marginal propensity to consume or b is 0.6.

The marginal propensity to save will be

= 1 - 0.6

= 0.4

7 0

3 years ago

You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to

sergiy2304 [10]

Answer:

You will invest $18,000 in Stock F.

Explanation:

This can be calculated using the portfolio return formula as follows:

PR = (wD * rD) + (wF * rF) + (wR * rR) ............................ (1)

Where;

PR = Portfolio expected return = 10.7%, or 0.107

wD = Weight of the amount invested in Stock D = Amount invested in Stock D / Total amount invested = $50,000 / $100,000 = 0.50

rD = Expected Return from Stock D = 14.2%, or 0.142

wF = Weight of the amount invested in Stock F = Amount invested in Stock F / Total amount invested = ?

rF = Expected Return from StocK F = 10.1%, or 0.101

wR = Weight of the amount invested in risk free = 1 - wD - wF = 1 - 0.50 - wF = 0.50 - wF

rR = Expected Return from Risk free = 5.6%, or 0.056

Substitute all the values into equation (1), we have:

0.107 = (0.50 * 0.142) + (wF * 0.101) + ((0.50 - wF) * 0.056)

0.107 = 0.071 + (wF * 0.101) + ((0.50 * 0.056) - (wF * 0.056))

0.107 - 0.071 = (wF * 0.101) + 0.028 - (wF * 0.056)

0.036 - 0.028 = (wF * 0.101) - (wF * 0.056)

0.008 = wF(0.101 - 0.056)

0.008 = wF0.045

wF = 0.008 / 0.045

wF = 0.18

Since,

wF = Amount invested in Stock F / Total amount invested

We then substitute and solve for Amount invested in Stock F as follows:

0.18 = Amount invested in Stock F / $100,000

Amount invested in Stock F = 0.18 * $100,000 = $18,000

Therefore, you will invest $18,000 in Stock F.

8 0

3 years ago

March 1, 2017, Alpha Company's beginning work in process inventory had 8,000 units. This is its only production department. Begi

Nikolay [14]

Answer:see attached file

Explanation:

4 0

3 years ago

Read 2 more answers

Carla Vista Co. issued $590,000, 10-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on Januar

34kurt

Answer:

cash 595,900 debit

bonds payable 590,000 credit

premium on bonds 5,900 credit

Explanation:

We have to record the issuance of the bonds:

cash proceeds:

face value x quote:

590,000 x 101/100 = 595,900

face value (590,000)

premium 5,900

There is a premium as we are receiving more than we are going to pay at maturity.

We will debit the cash proceeds form the bond

and credit the bonds and premium

6 0

3 years ago