Answer:
The journal entry is as follows:
Cash A/c Dr. $51.45
To Paid in capital in excess of par value A/c $51.42
To Common shares A/c $0.03
(To record the sale of the shares)
Note: The amount mentioned in debit and credit column in the above journal entry are in the millions of dollar.
Workings:
Cash = Shares sold × shares closing price
= $3 million × $17.15
= $51.45 million
Common shares = Shares sold × Par value per share
= $3 million × $0.01
= $0.03 million
Paid in capital in excess of par value = Cash - Common shares
= $51.45 - $0.03
= $51.42
<u>When using survey feedback activities Managers analyze survey data to solve problems</u>
Explanation:
- A survey is a tool/technique adopted by management to encourage dialogue among the members of an organization.
- When the organization decide to conducts an employee survey, it is basically entering into a social contract with employees to provide feedback.
Feedback is exchanged for management consideration and action.
When employees provide information through survey, they expect that management will listen/hear their input and use the information to solve their problem.
<u>So it is appropriate to say that through survey feedback activities Managers analyze survey data to solve problems</u>
Answer:
3. Correctly ignored a sunk cost
Explanation:
Sunk costs refer to those costs which have been incurred in the past, which are non recoverable and which have no current or future benefits.
Sunk costs are considered as irrelevant for decision making process as they do not relate to current period and have no future implications. For example, research and development expenditure incurred in the past represents a sunk cost.
In the given case, the ticket for opera was already purchased for $100 which can now neither be recovered nor transferred. Thus this cost is irrelevant for decision making as expenditure has already been made. When Shen decided to go for a party instead of the concert, Shen has correctly ignored a sunk cost.
Answer:
a.
Cash 27000 Dr
Common Stock 13500 Cr
Paid in capital in excess of par-Common stock 13500 Cr
b.
Cash 135000 Dr
Preferred Stock 135000 Cr
Explanation:
a.
When we issue stock at premium, we always record the amount received from such issuance of stock at full. So, the cash account will be debited for 4500 * 6 = 27000
However, we record the common stock issued at par value and the remaining is credited under the reserve account which is Paid in capital in excess of par.
Thus the common stock will be credited by its par value of 4500 * 3 = 13500 and the remaining 4500 * 3 will be credited to the Paid in Capital account.
b.
The par value of the preferred stock is 4500 * 30 = 135000
Thus the preferred stock is issued at par and we simply debit the cash received from the issue and credit the preferred stock.
Answer:
c. II and IV are governmental; I and III are not.
Explanation:
A government agency is usually a permanent organization established by either a state or national government in a federal system. They are established by legislative or executive powers for oversight and administration of specific functions. Examples of government agencies are Food and Drugs Administration (FDA), Consumer Product Safety Commission, Intelligence, Finance and Communications agency.
Non-governmental agency usually referred to as NGOs is a non-profit.
Of the four consumer protection groups listed above, Consumer Product Safety Commission and Food and Drug Administration are governmental; Better Business Bureau and Consumers Union are not.
