Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr $24,000 (600 shares × $40)
To Common Stock $600 (600 shares × $1)
To Additional Paid-in Capital in excess of par - Common Stock $23,400
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
2. Cash A/c Dr $4,400 (100 shares × $44)
To Common Stock $100 (100 shares × $1)
To Additional Paid-in Capital in excess of par - Common Stock $4,300
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
Answer:
3.53 years
Explanation:
The computation of the payback period is shown below:
In year 0 = $8,300
In year 1 = $2,100
In year 2 = $3,000
In year 3 = $2,300
In year 4 = $1,700
If we sum the first 3 year cash inflows than it would be $7,400
Now we subtract the $7,400 from the $8,300 , so the amount is $900 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $1,700
So, the payback period equal to
= 3 years + $900 ÷ $1,700
= 3.53 years
Answer:
It should be greater than $36
Explanation:
The opportunity cost of working is the amount of money sacrificed or could have earned if the individual was not working. In this case, Claire has decided to go with her friend which means that the opportunity cost of not working is less than the benefits receives from going out. Because she is not working it means that the opportunity cost of working is more than 36 dollars, which is the income she could have earned in 3 hours.
He would would have a short term capital loss of $200 (10 shares at $20 each)
Short term losses are considered losses on assets that have been held for less than 1 year.
