Answer:
Debit Credit
Cash $18,468
Sales $18,468
(Being Cash sales made.)
Sales Commission Expense 79
Cash 79
(Being commission paid on sales.)
So thus the balance of cash book = $18468 - 79 = $18,389
Explanation:
Answer:
Estimated Annual Overhead divided by Estimated Annual Activity Level
Explanation:
The computation of the predetermined overhead rate. The formula is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
The estimated direct labor hour is a part of the activity level
And, it shows a relationship between the Total estimated manufacturing overhead and the estimated annual activity level
Hence, all other options are wrong
A good way that Anthony is reducing his lenders risk is the fact that he is taking a larger stake in the asset he is purchasing.
<h3>What is the lenders risk?</h3>
This is the risks that borrowers or people that go to financial agencies face when they collect loans and are unable to repay it or meet the loans obligations.
The risk here is being reduced by Anthony given the fact that he has a larger stake in this loan.
Read more on lenders risk here: brainly.com/question/9636559
Answer:
The journal entry for the issuance of the preferred stock is shown below:
Explanation:
Cash A/c..................................................Dr $30,000
Preference Stock A/c....................................Cr $10
Paid in Capital in excess of Par A/c...........Cr $29,990
Working Note:
Cash = Shares × Issued price per share
where
Shares are 1,000
Issued Price per share is $30
= 1,000 × $30
= $30,000
Preference Stock = Shares × Par price
= 1,000 × $0.01
=$ 10
Paid in Capital in excess of Par = Cash - Preference stock
= $30,000 - $10
= $29,990
Answer:
a. Are the stock and the rights correctly priced on the ex-rights day?
stock price at ex-right = [(3 x $80) + $53] / 4 = $73.25
cost of ex-right = $80 - $73.25 = $6.75
the rights are underpriced since they are sold at $2, and they should sell at $6.75
b. Describe a transaction in which you could use these prices to create an immediate profit.
You can purchase 3 rights at $6 and then pay subscription price ($53) and you would have an stock at $59. Your profit = $65 - $59 = $6 per stock.