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2 years ago

Oaktree Company purchased new equipment and made the following expenditures:

Business

1 answer:

const2013 [10]2 years ago

4 0

Answer:

Cr. Dr.

Equipment $66,880

Account Payable $62,600

Cash $4,280

Explanation:

All the costs incurred to make asset usable should be capitalised.

Equipment Cost = Purchase Price + Sales Tax + Freight Charges + Insurance Charges + Installation

Equipment Cost = $59,000 + $3,600 + $840 + $1,040 + $2,400

Equipment Cost = $66,880

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The outstanding capital stock of Novak Corporation consists of 1,800 shares of $100 par value, 7% preferred, and 5,100 shares of

Alborosie

Solution :

Preferred Common

Non cumulative and non Participative 12,600 67,400

Cumulative and non participative 37800 42200

Cumulative and participative 47876 32124

Current Stock Out Standing

Common stock at the rate 50 5100 shares 255000

Preferred stock 7% at the rate 100 1800 shares 180000

Cumulative the annual dividend on the preferred stock

Preferred stock dividend (180000 x 7%) 12600

Dividend Arrears to preferred stock (12600 x 2) 25200

Non cumulative and non participative

Preferred Common Total

Current year 12600 12600

Arrears 0 0

Common stock 67400 67400

Total dividend 12600 67400 80000

Cumulative and non participative

Preferred Common Total

Current year 12600 12600

Arrears 25200 25200

Common stock 42200 42200

Total dividend 37800 42200 80000

Cumulative and participative

Preferred Common Total

Current year 12600 12600

Arrears 25200 25200

Common stock (255000 x 7%) 17850 17850

Balance dividend pro data 10076 14274 24350

Total dividend 47876 32124 80000

Working notes :

Amount for the participation = 80000-(12600+25200+17850) = 24350

Rate of participation = $\frac{24350}{(255000+180000)}$ = 5.5977%

Participating dividend:

Preferred stock = 18000 x 5.5977% = 10076

Common stock = 255000 x 5.5977% = 14274

Total participating dividend = 24350

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2 years ago

A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. Th

Valentin [98]

Answer:

(B) $2,100

Explanation:

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3 years ago

Read 2 more answers

the creation of a home market is not only necessary to procure for our agriculture a just reward of its labors, but it is indisp

Ahat [919]

The United States should increase the domestic manufacturing to promote prosperity.

<h3>What is manufacturing?</h3>

Manufacturing is the creation or manufacturing of items with the aid of resources such as machinery, labor, tools, and chemical or biological processing or formulation. It is the very foundation of the economy's secondary sector. The phrase can be used to characterize a range of human undertakings, from handicraft to high-tech, but it is most usually used in relation to industrial design, which entails the extensive transition of raw materials from the primary industry into finished goods. Such products may be delivered via the tertiary industry to end users and consumers, sold to other manufacturers for the creation of other, more sophisticated products (such as aircraft, home appliances, furniture, and sports equipment), or both (usually through wholesalers, who in turn sell to retailers, who then sell them to individual customers).

To learn more about manufacturing, visit:

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8 months ago

A fully inclusive document detailing an organization's mission, organization, objectives, and operations is called a(n) _____

inn [45]

The one responsible of providing a fully inclusive document that details the mission of the organization, its objectives and their operations is called business. Business are likely to be run by a group of people in which they have a common interest or purpose in order to achieve their goal.

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3 years ago

A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained

netineya [11]

Answer:

Ikiban Inc.

Statement of Cash flows

For the Year Ended June 30, 2017

Cash flow from operating activities:

Net income $117,510

Adjustments to net income:

Depreciation expense $67,600
Decrease in inventory $27,200
Decrease in prepaid expenses $1,900
Increase in accounts receivable ($18,500)
Gain from sale of equipment ($3,000)
Decrease in accounts payable ($9,500)
Decrease in wages payable ($9,900)
Decrease in taxes payable ($2,800) $53,000

Net cash flow from operating activities $170,510

Cash flow from investing activities:

Purchase of new equipment ($67,600)

Disposal of old equipment $13,500

Net cash flow from investing activities ($54,100)

Cash flow from financing activities:

Issuance of common stock $69,000

Retirement of note payable ($30,000)

Distributed dividends ($106,310)

Net cash flow from financing activities ($67,310)

Net cash increase $49,100

Cash balance June 30, 2016 $53,000

Cash balance June 30, 2017 $102,100

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3 years ago