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Rufina [12.5K]
4 years ago
14

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]4 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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Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. The Pound Co. paid the invoice within the disc
Scorpion4ik [409]

Answer:

c. $24,990

Explanation:

The Term 2/15 net 45 mean 2% cash discount is offered if the payment is made within 15 days otherwise the credit period is 45 days. There is no after 15 days of sale.

Amount of Sale = $25,500

Discount Rate = 2%

The Pound Co. paid the invoice within the discount period. They are eligible to receive the 2% discount on sale value.

Discount Amount = $25,500 x 2% = $510

Net Sales amount in this transaction = $25,500 - $510

Net Sales amount in this transaction = $24,990

8 0
3 years ago
A company has a cost of debt (before tax) of 5.5% and a cost of equity of 12.8%. In addition, the company has a target capital s
alexira [117]

Answer:

10.12%

Explanation:

Wacc = (D / V)rd (1 - t) + (E / V) re

(D/V) = 0.3

Rd = before tax cost of debt = 5.5%

T = tax rate = 30%

(E / V) = 0.7

Re = marginal cost of equity = 12.8%

= (0.3 x 5.5% × 0.7) + (0.7 x 12.8%) = 1.155% + 8.96% = 10.12%

I hope my answer helps you

4 0
4 years ago
What is a lien and when can it be used/
Talja [164]

A lien is a claim against an asset, often to get a loan. All debts related have to be paid before it is removed.

3 0
3 years ago
Read 2 more answers
The right communication channel to use in IMC is
ipn [44]

Answer: The right communication channel to use in IMC is C. the one that will connect to the desired recipients.

Explanation: IMC stands for integrated marketing communications. IMC helps make sure that all types of communication forms are presented in a way where others can understand the message. When the message is presented in a way others are able to understand, the marketing and promotional tools are all working together correctly.

6 0
3 years ago
Show your work and explain in a full sentence how 4 2-6 is equivalent to 3 8-6.
klemol [59]

Answer:

4\frac{2}{6} = 3\frac{8}{6} = \frac{26}{6}

Explanation:

Given

4\frac{2}{6} and 3\frac{8}{6}

Required

Show that they are equivalent

To do this, we simply convert both fractions to either decimal or improper fraction

Using improper fraction

4\frac{2}{6} = \frac{6 * 4 + 2}{6}

4\frac{2}{6} = \frac{24 + 2}{6}

4\frac{2}{6} = \frac{26}{6}

3\frac{8}{6} = \frac{6 *3+8}{6}

3\frac{8}{6} = \frac{18+8}{6}

3\frac{8}{6} = \frac{26}{6}

After converting both to improper fraction, we have:

4\frac{2}{6} = 3\frac{8}{6} = \frac{26}{6}

<em>Hence, both are equivalent</em>

3 0
3 years ago
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