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3 years ago

A stock-split journal entry would include?

2 answers:

6 0

A stock-split journal entry would include? A memorandum notation. If a stock split happens, it is because an company's board of directors decided to increase the amount of shares outstanding. They do this by issue more shares of the company to current stock holders but at a lower price due to the increase in quantity.

djyliett [7]3 years ago

6 0

The answer to your questions is "Memorandum Notation only."

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Nov. 5 Purchased 850 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November

pickupchik [31]

Answer: Please see explanation column for answer

Explanation: A perpetual inventory system maintains inventory balances ensuring that records are continually made immediately when purchases or sale are made together with any returns which are recorded in inventory accounts.

To record purchase of merchandise

Date Account Debit Credit

Nov 5 Merchandise Inventory $8500

Accounts payable $8,500

To record return of merchandise purchased

Nov 7 Accounts payable $300

Merchandise Inventory $300

To record payment of inventory

Nov 15 Accounts payable $8,200

Cash $7,954

Merchandise Inventory $246

Calculation =

Nov 5 - Cost of merchandise purchased = No of units x unit price = 850 x 10 =$8500

Nov 7 - Cost of merchandise returned = No of units returned x unt price = 30 x 10 = $300

discount received = Balance from accounts payable x discount rate = (8,500- 300) x 3%= 8200 x 0.03= $246

Cash = Accounts payable - Merchandise Inventory = $8200 - 246 =$7984.

4 0

3 years ago

For a perfectly competitive firm, which of the following is not true at profit maximization?a. Total revenue minus total cost is

topjm [15]

Answer: Option (d) is correct.

Explanation:

Correct option: Market price is greater than marginal cost.

In a perfectly competitive market, there are large number of buyers and sellers. So, price is determined by the market forces.

At a point of profit maximization, price is equal to the marginal cost and we have to maximize the difference of the total revenue and total cost. It was not seen in a perfectly competitive market that the price is above the marginal cost at a profit maximizing point.

Therefore, option (d) is not true.

5 0

3 years ago

A price ceiling is the lowest price a seller can charge without losing all of its customers. a legal minimum price below which a

zavuch27 [327]

The answer would be a legal price above which a good/service cannot be sold at.

6 0

3 years ago

Jimmer’s nominal income will go up by 10 percent next year. Inflation is expected to be – 2 percent next year. By approximately

kompoz [17]

Answer:

Nominal interest rate (n) = 10% = 0.10

Inflation rate (i) = -2% = -0.02

Real interest rate (r) = ?

Application of Fisher's Equation

(I + n) = (1 + r)(1 + i)

(1 + 0.10) = (1 + r)(1 + -0.02)

1.10 = (1 + r)(0.98)

<u>1.10</u> = 1 + r

0.98

1.1224 = 1 + r

1.1224 - 1 = r

r = 0.1224 = 12.24%

Jimmer's real income will change by 12.24% next year.

Explanation:

In the determination of the rate of change in real income, there is need to apply Fisher's equation. The nominal rate and inflation rate have been given, thus, we will make the real rate the subject of the formula.

3 0

3 years ago

Jose received $400 for his birthday from his family. He wishes to buy a motorcycle and decides to use his birthday money towards

arsen [322]

Answer:

The correct answer is Future value with compound interest and $478.25.

Explanation:

According to the the scenario, the given data are as follows:

Present value (PV) = $400

Rate of interest = 6%

Rate of interest ( compounded quarterly) (rate) = 1.5%

Time period = 3 years

Time period ( compounded quarterly) ( Nper) = 12

So, we have to calculate Future value with compound interest because it is asking for a amount after 3 year.

So, we can calculate the future value by using financial calculator.

The attachment is attached below.

So, FV = $478.25

4 0

3 years ago