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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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A University is offering a charitable gift program. A former student who is now 50 years old is consider the following offer: Th

xenn [34]

Answer:

The value of this deferred annuity today on his 50th birthday is <u>$2,621.27</u>.

Explanation:

Since the student's desired return of 6% will also start to be paid starting on his 65th birthday, the value of this deferred annuity today on his 50th birthday can be calculated by first calculating the value of the investment on the 65th birthday.

We therefore proceed with the following two steps:

Step 1: Calculation of the value of the investment on the 65th birthday

The value of the investment on the 65th birthday can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV at 65 = Present value of the annuity at 65th birthday =?

P = Annuity payment = Invested amount * Student's desired return = $8,900 * 6% = $534

r = Student's desired return rate = 6%, or 0.06

n = number of more years anticipate to live after 65th birthday = 21

Substitute the values into equation (1) to have:

PV at 65 = $534 * ((1 - (1 / (1 + 0.06))^21) / 0.06)

PV at 65 = $534 * 11.764076621288

PV at 65 = $6,282.02

Therefore, the value of the investment on the 65th birthday is $6,282.02.

Step 2: Calculation of the value of this deferred annuity today on his 50th birthday

The value of this deferred annuity today on his 50th birthday can therefore be calculated using the simple present value for as follows:

PV at 50 = PV at 65 / (1 + r)^N …………………………….. (2)

Where;

PV at 50 = the value of this deferred annuity today on his 50th birthday = ?

PV at 65 = Present value of the annuity at 65th birthday = $6,282.02

r = Student's desired return rate = 6%, or 0.06

N = number of years from 50th birthday to 65th birthday = 65 - 50 = 15

Substitute the values into equation (2) to have:

PV at 50 = $6,282.02 / (1 + 0.06)^15

PV at 50 = $6,282.02 / 2.39655819309969

PV at 50 = $2,621.27

Therefore, the value of this deferred annuity today on his 50th birthday is <u>$2,621.27</u>.

5 0

2 years ago

The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, t

Arturiano [62]

Answer:

B) the less an additional unit of capital adds to production

Explanation:

The diminishing return state that if everything else is held constant, each additional unit will increase production by a fewer amount than previous one. That's because the same amount of resource can only use efficiently a certain amount of capital then there is a loss in this good use and therefore, the output do not increase at the same rate as we add up capital.

A person can do a good use of several type of tool for building a house but I can only use one or two at the time

Adding more tools can increase productivity but in the end there is only one person working.

4 0

3 years ago

If a currency's spot market is liquid, its exchange rate will ________ highly sensitive to a single large purchase or sale of th

Troyanec [42]

Answer:

The correct answers to fill the blank spaces are not be; small

Explanation:

If a currency's spot market is liquid, its exchange rate will not be highly sensitive to a single large purchase or sale of the currency. Therefore, the change in the equilibrium exchange rate will be relatively small.

7 0

3 years ago

Read 2 more answers

Barry is the branch manager of a large toy store. He has been given the responsibility to communicate with, coach, and motivate

laiz [17]

Answer:

Human skills

Explanation:

As the branch manager Barry requires human skills to perform his roles well. The human skills can also be referred to as interpersonal skills. These are those skills that would present Barry's ability to interact, work or relate effectively with people.

Human skills would enable Barry to make use of human potential in the company and also motivate the supervising managers for better results

6 0

3 years ago

Rutgers Racquet Club adjusts its accounts monthly. Club members pay their annual dues in advance by January 15. The entire amoun

SOVA2 [1]

Answer:

1. Salaries earned by club employees that have not yet been recorded or paid amount to $3,700.

Dr wages expense 3,700

Cr wages payable 3,700

2. A local VFW sponsored a tournament at Rutgers Racquet Club that took place on December 22, 20x5 of the current year. At December 31, the $1,200 owed by the VFW for court rentals on December 22 had not yet been recorded or billed.

Dr accounts receivable 1,200

Cr rental fees 1,200

3. A one-year fire and flood insurance policy had been purchased on May 31. The entire premium of $7,200 was initially recorded as Prepaid Insurance.

Dr insurance expense 4,200

Cr prepaid insurance 4,200

4. Rutgers Racquet Club was built in 20x1. The cost of the building and equipment was $320,000. Depreciation of the club's building and equipment is based on an estimated life of 20 years and a salvage value of $80,000. The straight-line method of depreciation is used.

Dr depreciation expense 12,000

Cr accumulated depreciation, building 12,000

5. A 36-month bank loan in the amount of $108,000 had been obtained by Rutgers Racquet Club on December 1, 20x5. Interest is computed at an annual rate of 9%. The entire $108,000, plus all of the interest accrued over the 36-month life of the loan, is due in full on December 1, 20x8.

Dr interest expense 810

Cr interest payable 810

6. Membership dues earned in December, 20x5 for collections received at January 15, 20x5 amounts to $52,000.

Dr unearned membership dues 52,000

Cr membership dues earned 52,000

7. Unrecorded Income Taxes Expense accrued in December amounts to $16,000. This amount will not be paid until January 15, 20x6.

Dr income tax expense 16,000

Cr income tax payable 16,000

4 0

3 years ago