All categories

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.

You might be interested in

Chester's product manager is considering lowering the price of the Cone product by $2.50 and wants to know what the impact will

lozanna [386]

Answer:

The contribution margin will decrease by 2.50

Explanation:

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

IF sales decreases, then the contribution margin decreases.

That's because, there is less money to pay for the variable cost.

The company will also have to sale more units to break even, as now each units contribution is fewer.

Cone's should evaluate how much their sales are expected to increase for the lower price and be cautious

7 0

3 years ago

kristen and harrison are equal partners in the kh partnership. the partners formed the partnership 5 years ago by contributing c

Sauron [17]

Answer: Harrison will acknowledge a gain equal to the difference between his basis and the distribution . This is because he receives only money in the distribution and the amount transcend his basis in KH. He further allot his entire basis in KH to the basis in the money received resulting in $0 basis in KH after the distribution.

∴ The capital gain will be $6000 i.e. (50000 - 44000) and $0 basis.

4 0

3 years ago

business-to-business marketers will sometimes promote their goods directly to consumers. this is because business demand is __

MrMuchimi

The request ought to be Derived Demand. This is a term utilized as a part of the financial investigation that portrays the request put on one great or administration because of changes in the cost for some other related great or administration. It is an interest for some physical or immaterial thing where a market exists for both related products and ventures being referred to. The determined request can significantly affect the inferred great's market cost.

3 0

3 years ago

As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the followin

diamong [38]

Answer:

$15,850

Explanation:

Particulars Amount

Sales revenues, each year $40,000

Less : Depreciation $10,000

Less : Other operating costs $17,000

EBIT $13,000

Less : Interest expense $4,000

EBT/PBT $9,000

Less: Tax at 35% $3,150 ($9,000*35%)

PAT $5,850

Add: Depreciation $10,000

Cash flow after taxes $15,850

8 0

3 years ago

If the price of Coca-Cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 ca

yawa3891 [41]

Answer:

E. Elastic

Explanation:

Unit elastic demand is when the quantity demanded changes by the same percentage that the price does.

Inelastic demand is when the quantity demanded changes less than the price does.

Elastic demand is when an increase in prices causes a bigger percentage fall in demand. It is also when price or other factors have a big effect on the quantity consumers want to buy. In this case; the price rises 20% (50 to 60) and demand falls 50% (100 to 50), so the demand for Coca-Cola is elastic

6 0

3 years ago

Read 2 more answers