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Masteriza [31]
3 years ago
5

Listed below are various transactions that a company incurred during the current year. select the impact on total stockholders'

equity for each scenario. specifically state whether stockholders' equity would increase (i), decrease (d), or have no effect (ne) as a result of each transaction listed below. consider each transaction independently.
Business
1 answer:
adelina 88 [10]3 years ago
4 0

Answer:

1. No par common stock is issued.

  • I) INCREASE STOCKHOLDERS' EQUITY SINCE COMMON STOCK ACCOUNT WILL INCREASE.

2. Treasury stock is sold at cost for cash (assume the cost method).

  • I)  INCREASE STOCKHOLDERS' EQUITY SINCE TREASURY STOCK IS A CONTRA EQUITY ACCOUNT THAT REDUCES TOTAL EQUITY, AND SINCE THE STOCKS WERE HOLD, EQUITY WILL INCREASE.

3. Treasury shares of preferred stock are purchased (assume the cost method).

  • D)  DECREASE STOCKHOLDERS' EQUITY SINCE TREASURY STOCK IS A CONTRA EQUITY ACCOUNT THAT REDUCES TOTAL EQUITY.

4. A payment date occurs for a cash dividend.

  • NE) NO EFFECT ON EQUITY, SINCE EQUITY HAD ALREADY DECREASED ON THE DAY THAT THE DIVIDENDS WERE DECLARED.
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Gillian is consuming her optimal consumption bundle of peanuts and raisins. The marginal utility associated with the last peanut
olchik [2.2K]

Answer: The price of peanuts realitve to that of raisins must be 2.

Explanation: Mathematically, relative prices are defined as:

Relative price of Good A with respect to Good B = Price of A / Price of B

So: Relative price of peanuts respect to raisins = Price of peanuts / Price of raisins

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<u>Relative price of peanuts respect to raisins = 4 / 2 = 2.</u>

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3 0
3 years ago
A court order to compel or restrain a particular action is called
expeople1 [14]
I am pretty sure that correct definition looks like this: A court order to compel or restrain a particular action is called writ of injunction. For example, you have a lawn, and someone deliberately spoils it every day. You can apply to the court for the injunction against this person to deny the access to your lawn for this person.
4 0
2 years ago
Read 2 more answers
On January 1, 2009, Diego owed $14,033 to his friend Ricardo, who was kind enough not to charge Diego any interest. Each month d
aleksandrvk [35]

Answer:

$481

Explanation:

Amount paid = Amount lent - Amount left

Amount paid = $14,033 - $8,261

Amount paid = $5,772

Average amount paid each month = Amount paid / Number of months

Average amount paid each month = $5,772 / 12

Average amount paid each month = $481

So, the average amount of Diego's monthly payments is $481.

6 0
2 years ago
Assuming a 360 day year, the interest charged by the bank at the rate of 6%, on a 90 day discounted note payable of 100,000 is:_
Readme [11.4K]

Answer:B. $1,500

Explanation:

Interest revenue is  money earned when an entity or individual  loans   money to another.  it can also be regarded as money accrued  from investments. IT is calculated as  

Interest Revenue = Principal x Rate x Time

= $100,000 x 6%  x 90/360

= $100,000 x 0.06 x 0.25

= $1,500

Therefore the interest charge by the bank is $1500.

4 0
2 years ago
Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The firm's target weighted avera
Savatey [412]

Answer:

0.73

Explanation:

Given that

WACC = 11%

Tax rate = 34%

Cost of equity = 14.9 %

Cost of debt = 8.6%

Recall that

WACC = (cost of equity × % of equity) + (cost of debt × % of debt) + ( 1 - tax rate)

We are to find

Cost of debt and cost of equity

Let

Cost of debt be x

Cost of equity be (1 - x)

Thus,

0.11 = (1 - x)(0.149) + (x)(0.086)(1 - 0.34)

x = 0.4228

Therefore,

Debt-equity ratio

= Cost of debt/cost of equity

= 0.4228/(1 - 0.4228)

= 0.73

4 0
3 years ago
Read 2 more answers
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