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3 years ago

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows:

Business

1 answer:

NikAS [45]3 years ago

3 0

Answer:

part a.

Cash $450,000 (debit)

Common Stock $300,000 (credit)

Share Premium $150,000 (credit)

part b.

Cash $400,000 (debit)

Preferred Stock $320,000 (credit)

Share Premium $80,000 (credit)

part c.

Cash $500,000 (debit)

Bonds Payable $500,000 (credit)

part d.

Dividend Declared - common stock $50,000 (debit)

Dividend Declared - preferred stock $20,000 (debit)

Shareholders for Dividends $70,000 (credit)

Explanation:

For par value stock, any price paid in excess of the par value of that stock is accounted for in the share premium reserve of that stock.

When a dividend is declared, recognize the equity element - dividend declared for the class of equity that is entitled to the dividend to the extent of the stocks outstanding on the date the dividend is declared.Also recognize a liability - Shareholders for Dividends arising from the obligation that the entity has created (through the declaration) to its stockholders

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Answer:

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Explanation:

if the Fed wants to increase the money supply by $1 million, then it would need to purchase US securities worth $500,000. The formulas used to calculate the impact of the Fed's operations are:

increase in money supply = additional funds x money multiplier

money multiplier = 1 / reserve ratio = 1 / 50% = 2
desired increase in money supply = $1 million

$1,000,000 = additional funds x 2

additional funds = $1,000,000 / 2 = $500,000

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3 years ago

Big Dig LLC makes an offer to perform an excavation and related tasks for Commercial Development Corporation, but due to a subst

valkas [14]

Answer:C. A mistake of value support the cancellation of a contract.

Explanation:

The law of equity says ' he who comes to equity must come with a clean hand. Although the law requires the enforcement of a valid contract but the precensce of a substantial mathematics mistakes make the contract unenforceable.

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3 years ago

What motivates most entrepreneurs to go into business for themselves? A. Guaranteed health care B. Full liability C. A higher sa

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3 years ago

Read 2 more answers

g If the beginning work in process includes 200 units that are 20% complete with respect to conversion and 30% complete with res

Temka [501]

Answer:

1,140 units

Explanation:

Note : The question requires us to use the weighted-average method. This method focuses on equivalent units of completed units and units still in process only.

Step 1 : Determine units completed and transferred

Units Completed = Beginning units + Units Started - Ending units

= 200 + 1,000 - 100

= 1,100 units

Step 2 : Calculate equivalent units of production with respect to conversion costs

Completed and transferred (1,100 x 100%) 1,100

Ending units (100 x 40%) 40

Total equivalent units of conversion costs 1,140

thus,

the equivalent units of productions for the period (using the weighted-average method) for conversion is 1,140 units.

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3 years ago

After-Tax Profit Targets Olivian Company wants to earn $360,000 in net (after-tax) income next year. Its product is priced at $3

noname [10]

Answer:

(A) $700,000

(B) 12,308 units

Explanation:

(A) The before-tax profit that is needed to achieve an after-tax target of $420,000 can be calculated as follows

= after-tax income/1-tax rate

= $420,000/(1-40/100)

= $420,000/1-0.4

= $420,000/0.6

= $700,000

(B) The number of units that will yield operating income can be calculated as follows

= desired contribution margin/Contribution margin per unit

Desired contribution margin= $445,000 + $295,000 + $700,000

= $1,440,000

Contribution margin per unit= 300-(90+66+15+12)

= 300-183

= 117

Therefore the number of units that will yield the operating income is

= 1,440,000/117

= 12,308 units

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4 years ago