Answer:
1. Apple Stocks Dr. $75,000
Deferred Donation Income Cr. $75,000
2. Apple Stocks Dr. $1,500
Gain on Apple Stocks Cr. $1,500
3. Cash Dr. $ 76,000
Gain/Loss on Apple stocks Dr.$1,500
Apple Stocks Cr.$76,500
Explanation:
1. when stocks are received subject to a condition that we can't recognize donation income. therefore it is recorded as liability. please note that deferred income is called as liability.
2. When value of stocks increase, asset stock of apple also increase by differential amount.
3. when asset is sold, the loss is recognized and assets are knocked off from books and cash asset is recorded.
Answer:
The answer is letter C
Explanation:
Market interest rates decline sharply.
Answer:
Common stock and $100
Explanation:
The journal entry is shown below:
Cash Dr $500 (100 shares × $5)
To Common stock $100 (100 shares × $1)
To Additional paid in capital in excess of par value - common stock (100 shares × $4)
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased the assets and credited the common stock and additional paid in capital as it increased the stockholder equity
Answer:
The answer is <u>"a. 8.13%".</u>
Explanation:
Given that;
d0 = $1.75
p0 = $40.00
g = 3.6% = 0.036
By using the formula;
Price of the stock = (Dividend this year)(1+g) ÷ (r - g)
By putting the values;
40 = (1.75)(1+0.036) ÷ (r - 0.036)
r - 0.036 = (1.75)(1.036) ÷ 40
r - 0.036 = 1.813 ÷ 40
r - 0.036 = 0.045325
r = 0.045325 + 0.036
r = 0.081325 = 0.081325 x 100
<u>r = 8.13%</u>
False - because not every business plans work
