No, a deductive strategy involves giving a general principle or rule and showing how that will apply to the current situation.
Answer: a) Option A
Explanation:
There will be no effect on retained earnings because retained earnings do not increase as a result of shares being sold. It increases when net income increases.
Total paid-in capital increases when stock is sold for higher than its par value or when treasury stock is sold for higher than its acquisition price. The treasury stock here was sold for higher than it was bought so this would increase the total paid in capital.
Answer:
In the context of the external environment of an organization, the task environment: includes the sectors that conduct day-to-day transactions with the organization.
Explanation:
In an organization setting, what is tagged as external environment entails the sectors that transacts with the organization on a day-to-day routine. Their forms of relationship on daily basis makes them to serve as external environment, they could be clients as the case may be.
Answer:
d. Cash will be debited for $210,000.
Explanation:
The journal entry for the issue of shares is shown below:
Cash A/c Dr $210,000
To common stock (5,000 shares × $5) = $25,000
To Paid-in Capital in Excess of Par Value $185,000
(Being issue of shares recorded)
So, the cash account is debited whereas the common stock and paid-in capital should be credited
And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value
B. owner contributions; retained earnings
