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Margarita [4]
3 years ago
15

DAE Parts Shop began business on January 1, 2019. The corporate charter authorized issuance of 20,000 shares of $5 par value com

mon stock and 5,000 shares of $10 par value, 5% cumulative preferred stock. DAE issued 12,000 shares of common stock at $25 per share on January 2, 2019. What effect does the entry to record the issuance of stock have on total stockholders' equity?
a. increase of $120,000
b. increase of $150,000
c. increase of $300,000
d. increase of $340,000
Business
1 answer:
andrew-mc [135]3 years ago
5 0

Answer:

c. increase of $300,000

Explanation:

The autorized shares do not increase the equity of the firm. The firm generaes equity when the shares are issued. Therefore, we should consider January 2nd issuance:

12,000 common shares x $25 =   300,000 total proceeds

face value: 12,000 common x $5 = 60,000 face value

additional paid-in                           240, 000

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4 years ago
What is an incentive?
77julia77 [94]

Answer:

it acts as a stimulus to a market

Explanation:

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I hope this helps

8 0
3 years ago
Flannery Corporation owns machinery with a book value of $520,000. It is estimated that the machinery will generate future cash
Aleonysh [2.5K]

Answer:

(d)$105,000.

Explanation:

Since the book value is more than the generated future cash flows so book value cannot be recovered. In this case, the generated future cash flows are ignored  

In this scenario, we compare the values between book value and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value of machinery - fair value of machinery

= $520,000 - $415,000

= $105,000

5 0
3 years ago
Tell us about a time when you went above and beyond for a customer or a time someone went above and beyond for you.
TEA [102]

As a customer service representative, I have always strived to exceed customer expectations. After helping the customer with the problem, we will get back to you the next week. I will double-check if there is anything wrong with the product you purchased and if there is anything else I can help you with.  My simple approach helped these customers make a good impression on the company and improved customer satisfaction.

When preparing responses to behavioral interview questions such as the following, you can organize your ideas according to the STAR format.

S: Situation - Brief background to the story.

T: Task - Please describe what was expected of you and the minimum required.

A: Action - tells you what you did and how you did it.

R: Results - Finally, show that your efforts have led to better results.

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8 0
2 years ago
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $158,000 Credit sale
IceJOKER [234]

Answer:

$8,870

Explanation:

Calculation to determine the balance in the allowance for doubtful accounts after bad debt expense is recorded

Using this formula

Balance in the allowance for doubtful accounts=

(Credit sales* Percentage of Credit sales)+Allowance for doubtful accounts credit balance

Let plug in the formula

Balance in the allowance for doubtful accounts= ($458,000*1.5%)+$2,000

Balance in the allowance for doubtful accounts=$6,870+$2,000

Balance in the allowance for doubtful accounts=$8,870

Therefore the balance in the allowance for doubtful accounts after bad debt expense is recorded will be $8,870

6 0
3 years ago
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