The real-income effect of a price change is most significant when

Italian Stallion has the following transactions during the year related to stockholders’ equity. February 1 Issues 5,000 shares

bixtya [17]

Answer:

The Journal entries are as follows:

(a) On Feb 1,

Cash A/c (5,000 × $15) Dr. $75,000

To common stock $75,000

(To record the issue of shares)

(b) On May 15,

Cash A/c (500 × $12) Dr. $6,000

To Preferred stock (500 × $10) $5,000

To Paid in capital in excess of par $1,000

(To record the issue of preferred shares)

(c) On Oct 1,

Dividend Expense A/c (5,500 × $0.75) Dr. $4,125

To Dividend Payable $4,125

(To record the declaration of dividend)

(d) On Oct 15,

No Journal entry would be passed.

(e) On Oct 31,

Dividend Payable A/c Dr. $4,125

To cash $4,125

(To record the payment of dividend)

5 0

2 years ago

The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhea

Aleks [24]

Answer:

The total factory overhead to be charged to the desk lamps is $235,000

Explanation:

solution attached below

8 0

3 years ago

Peterboro Supply has a current accounts receivable balance of $391,648. Credit sales for the year just ended were $5,338,411. Ho

andreyandreev [35.5K]

Answer:

Time taken will be 31.35 days

Explanation:

We have given account receivable = $391648

Credit sales for the year = $5338411

Number of days in an year = 365 days

We have to find the time taken on average for credit customers to pay off their accounts during the past year

Time taken is given by $=\frac{365\times account\ receivable}{credit\ sales}=\frac{365\times3 91648}{5338411}=31.35days$

5 0

3 years ago

The standard view in economics is that tax cuts without ________ will ________ the budget deficit resulting in ________.

lakkis [162]

The standard view in economics is that tax cuts without SPENDING CUTS will INCREASE the budget deficit resulting in CROWDING OUT INVESTMENT. When a government lowers tax without minimizing its spending, it leads to crowding out investment effect, which is a situation in which increased interest rates leads to a decrease in private investment spending in such a way that it takes color out of the initial increase of total investment spending.

4 0

3 years ago

Mary used a sample of 68 large U.S. cities to estimate the relationship between Crime(annual property crimes per 100,000 persons

Archy [21]

Answer:

Decrease by 50.

Explanation:

Estimated regression equation was:

Crime = 428 + 0.050 Income

Above regression equation says that if there is an increase in the income level by $1 then as a result crime increases by 5% which shows that there is a direct relationship between the income level and crime level.

Hence, if Income decreases by 1000, then we would expect that Crime will decreases by:

= 0.050 × 1,000

= 50

Decrease by 50.

3 0

3 years ago

The​ real-income effect of a price change is most significant when

The real-income effect of a price change is most significant when