Answer:
a. Prepare the journal entries to record the share issuances.
- Dr Cash 500,000
- Cr Preferred stocks 200,000
- Cr Additional paid in capital - preferred stocks 300,000
- Dr Cash 160,000
- Cr Common stocks 160,000
b. Prepare the journal entry for the issuance of the common stock assuming that it had a stated value of $10 per share.
- Dr Cash 160,000
- Cr Common stocks 80,000
- Cr Additional paid in capital - common stocks 80,000
c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $2 per share.
- Dr Cash 160,000
- Cr Common stocks 16,000
- Cr Additional paid in capital - common stocks 144,000
Answer:
Earns $13650 more;
To double: 14.49years at simple interest or 10.39years at compound rate.43.48years at simple interest or 20.78years at compound rate
To quadruple:
Explanation:
Using simple interest calculation:
I=PRT/100
I=Interest
P=Principal
R=Interest Rate
T=Time
Therefore I=65000*0.08*8
I=41600
Using compound interest calculation;
A=P(1+R)^T
A=Amount
A=65000(1+0.08)^8
A=65000*1.85
A=120250
I=120250-65000
I=55250
The compound interest rate earns more by (55250-41600) =$13,650
To double the interest using simple interest calculation;
65000=65000*0.069*T
T=65000/4485
T=14.49years
To double the interest using compound rate calculation:
130000=65000(1+0.069)^T
(1+0.069)^T=130000/65000
1.069^T=2
T=In(2)/In(0.069)
T=10.39years
To quadruple your money using simple rate calculation:
195000=65000*0.069*T
T=195000/4485
T=43.48Years
To quadruple your money using compound rate calculation;
260000=65000(1+0.069)^T
1.069^T=4
T=In(4)/In(1.069)
T=20.78years
Answer:
Incomplete question. Helpful details provided below.
Explanation:
A seven firm cartel implies a group of seven individual firms or companies that produce similar products who mutually agreed to supply certain amount of these products at a fixed price inorder to equally and fairly make profit.
In this case, the law of demand and supply applied resulting in a drop in price of Whatailsya because of excess supply.
Answer: c. legal but unethical
Explanation:
With John being in charge of the loan application when Albert came to apply, John had access to Albert's information.
John then used this information which he had LEGAL access to, to recommend a bank product to Albert.
This is legal but UNETHICAL because Albert did not know that any information he gave will be used for a reason different from his application for a loan.
