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3 years ago

Prepare the journal entry to record autumn company’s issuance of 63,000 shares of no-par value common stock assuming the shares:

Business

1 answer:

mojhsa [17]3 years ago

7 0

The entry for this transaction would be this:

Land 1,827,000

Ordinary shares 1,827,000

The market value of the shares on this transaction does not affect the recording of this transaction. If the share has no par value, the stated value should be used. Stated value is a value assigned by the company to its stock for the purpose of accounting and it does not have any relation with the market value of the shares. Since stated value is not given in this problem, we should record the entire amount of the land exchanged in this transaction to the "Ordinary shares" account.

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A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What m

prisoha [69]

Answer:

The risk free rate is 3.325%

Explanation:

The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate
rM is the return on market
(rM - rRF) gives us the risk premium of market

We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,

Let rRF be x.

0.1185 = x + 1.24 * (0.102 - x)

0.1185 = x + 0.12648 - 1.24x

1.24x - x = 0.12648 - 0.1185

0.24x = 0.00798

x = 0.00798/0.24

x = 0.03325 or 3.325%

3 0

3 years ago

Multiple Choice

pickupchik [31]

Answer:

inflation

Explanation:

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3 years ago

Daube Company's operations for the month of July are summarized as follows: Provided $8,600 of services on account. Received $3,

Norma-Jean [14]

Answer: See explanation

Explanation:

a. Determine the net income for July using the cash basis of accounting.

Revenue = $3800 + $1100 + $5100 = $10000

Less: Expense = $1200

Net Income = $10000 - $1200 = $8800

b. Determine the net income for July using the accrual basis of accounting.

Revenue = $8600 + $3800 = $12400

Less: Expense = $1300

Net income = $12400 - $1300 = $11100

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3 years ago

Which of the following is not a basic principle of the COSO ERM framework?

Gnom [1K]

Answer:

The correct answer is letter "B": Companies are formed to create value for society.

Explanation:

The Committee of Sponsoring Organizations (COSO) is an international acknowledgment organism where basic risk regulating frameworks and accomplishment in organizational internal control matters are established. When it comes to Enterprise Risk Management (ERM) the committee proposes key principles and concepts for clear guidance.

Creating value for society is not included in one of the core objectives of the COSO ERM.

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3 years ago

Good marketing research helps us identify what customers have purchased in the past and what they are likely to want in the futu

Alexxx [7]

Answer:

These are the answers for the question:

A. sequential data

B. formative data

C. primary data

D. secondary data

And this is the correct one:

C. primary data

Explanation:

Primary data or primary information is data that is gathered by the marketing researcher, directly from the source, and with the purpose of finding information to solve the marketing research question.

In this case, Super Fun is engaging in primary data collection because the marketing team will survey the customers directly, with the goal of understanding better customers wants and needs while they are at the Super Fun Park.

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3 years ago