Answer:
1 a) + asset , + preferred stock
b) + asset , + preferred stock
c) + assets , + stockholder's equity
d) - and + Asset
e) + -Asset
f) - Equity , + liability
g) - Equity , - Asset
journal entry
a) Debit bank 700000 Credit Preferred stock 700000
b) debit land 420000 , credit preferred stock 420000
c) debit bank 768000 credit stockholder's equity 768000
d) Debit investment 270000 credit bank 270000
e) Debit bank 189000 , credit investment 189000
f) Debit dividend 19600 credit shareholders for dividends 19600
g) debit dividends 96000 credit bank 96000
Explanation:
dividends preferred = 7000 + 4200 = 11200 * 1 . 75 = 19600
dividends common stock = 48000 * 25 * 8 % = 96000
Answer:
The Journal Entry is as follows:
Loss on Impairment $8,400
Debt Investment ($8,400)
Explanation:
Given.
Carrying Value = $79,200
Decreased Value = $70,800
Differences = $79,200 - $70,800
Differences = $8,400
Since the loss in value is determined, uncollectible.
The required entry on the journal entry are the amount loss on impairment and the amount invested on debt.
The Journal Entry is as follows:
Loss on Impairment $8,400
Debt Investment ($8,400)
The correct answer would be the first option. A note receivable can be transferred to another party by endorsement. It is described as a current asset of an organization that claims a written promissory note from other organization. It is usually made up of the principal and the interest amount.
$3.56 is the capital gain
<u>Explanation:</u>
<u>Credenze industries
</u>
The Dividend = 1.70 , Cost of capital = 9% , Selling price =62 , calculation of Expected capital gain =?
<u>In order to calculate the Present market price (PM) ,
</u>
Let the PM (Present market value) = x
The Cost of equity = the change in market price + dividend
=> X = $ 58.44 .
Therefore, the Capital Gain that has been gained is = $ 3.56
