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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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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

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7 0
3 years ago
A company's gross profit was $118,350 and its net sales were $466,300. its gross margin ratio equals:
ladessa [460]

The gross margin ratio is a percentage resulting from dividing the amount of a company's gross profit by the amount of its net sales. In this case it would be 118,350/466,300 = 25.38%

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3 years ago
Many online stream services allow customers to use their service of limited for 30 days. This strategy tries to increase the dif
Vadim26 [7]

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trialability

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8 0
2 years ago
Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of
Pepsi [2]
Mike brought 100 shares costing $53 each.
Total costs of shares= 100*53
=$5300

He got dividends of $1.45 per share. A dividend is money that is earnt back from a share.
Total dividend amount = 1.45*100
=$145

I'm assuming that Mike sold his shares at the end of the year. He sells for $60 each.
Total sales amount=60*100
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The rate of return in this instance can be defined as the amount of money made back from a share.

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Total costs= $5300
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6145/5300=1.1594
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Hope this helps! :)
4 0
3 years ago
The problem of preventing managers from acting in their own best interests and instead acting in the best interests of the stock
Mumz [18]

Answer:

The correct answer is letter "A": Agency Problem.

Explanation:

An Agency Problem occurs when a conflict of interest arises for an agent, a person acting on behalf of another person. The conflict of interest arises when the agent's own interests are different from those of the principal or the person being acted for. In the corporate world, the <em>Chief Executive Officer</em> (CEO) is an agent acting for the owners of the company: the <em>stockholders</em>.

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3 years ago
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