Answer:
$50,000
Explanation:
Generally, preferred stockholders receive dividends earlier than common stockholders. Moreover, as the preference shareholders are cumulative, if they do not receive dividends current year, they will receive in the next year. Finally, preferred dividend is fixed until there are new issuance of preferred stock.
Preferred dividends for Year 1 = 1,000 shares × $200 × 10% = $20,000
For year 2 = $20,000
Given, total dividends in year 1 = $15,000
Therefore, company provides $15,000 to preferred dividends. No common dividends in year 1.
However, in the next year (Year 2), the company will pay $5,000 + $20,000 = $25,000 to preferences shareholders.
Therefore, remaining dividends are for common stockholders.
Year 2 common stockholders dividends = $75,000 - $25,000 = $50,000.
Answer:
Face Value of Bonds = $100000
Unamortized Premium = $2000
Conversion of Equity Shares = 2000 * $20 = $40,000
Paid in Capital in Excess of Par = $100000 + $2000 - $40000 = $62000
Journal Entries
Account Title & Explanation Debit Credit
Bond Payable Account $100000
Unamortized Premium $2000
Common Stock $40000
Paid in Capital in Excess of par $62000
(To record conversion of Bonds)
Yes, a uniform menu allows for centralized planning and distribution without having to many different factories/suppliers.
Menu:
- If the food menu is consistent, it can be said that economies of scale would be in effect. This is due to the fact that the fixed cost per unit actually gets to decrease, which then leads to a decrease in the average cost of production per unit as the sales volume keeps on increasing, giving the company a cost advantage and resulting in economies of scale. However, when extending to other nations, the menu planning becomes more difficult because local preferences and cultural norms vary widely. For example, beef is not allowed in India, thus the menu must be designed accordingly.
- McDonald's benefits from economies of scale since customers can place larger orders to reduce the price of their food when there is a standard menu across the nation. The more of a good is produced, the lower the per-unit fixed cost is since these expenses are spread across a larger number of goods, according to Investopedia. Additionally, everywhere you travel in the nation, people are aware of what is on their menu.
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Answer:
A. A system composed of twelve privately owned regional banks that were regulated by the Federal Reserve Board
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.
Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.
Hence, the type of banking system that the Federal Reserve Act of 1913 establish is a system composed of twelve privately owned regional banks that were regulated by the Federal Reserve Board.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
I. The Fed controls the issuance of currency in United States of America: it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.
II. It provides banking services to all the commercial banks in the country because the Federal Reserve is the "lender of last resort."
III. It regulates banking activities in the United States of America: it has the power to supervise and regulate banks.
Also, the Fed is saddled with the responsibility of selling government securities such as treasury bills to the public.
