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3 years ago

Professional athletes attempting only to maximize income will defer larger salaries if:

1 answer:

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Professional athletes attempting only to maximize income will defer larger salaries if DEFERRED PAYOUTS ARE ADJUSTED UPWARD TO COMPENSATE FOR FOREGONE INTERESTS.
If professional athletes, whose sole aim is larger income are asked to wait for sometime before collecting their salaries, with the promise that their incomes will be raise for the period of their waiting, then, most of them will gladly agree to the arrangement, since, they are sure of higher amounts.

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Morgan Sondgeroth Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations

stepan [7]

Answer:

Part A) Book Value = $1,080,000

Part B) Book Value = $1,050,000

Explanation:

Part 1: To compute the book value of the common stock at December 31, 2020

To do this, we consider both the preferred and common stock values as follows:

Stockholder's equity:

Preferred Stock = $500,000

Common stock = $750,000

Retained earnings: To calculate retained earnings we need to deduct dividends in arrears to prefered stock holders and then ascribe the remaining value to retained earnings.

Dividend in Arrears= 3 years @ 8% interest per year

= 500,000 x 0.08 x 3= $120,000

Remaining earnings for available to common share holders

= Retained earnings balance- dividend paid to prferred stock holders.

=$800,000 (net income for 2020)- $40,000 (net loss for 2019) - $260,000 (net loss for 2018)

= $800,000-$40,000-$260,000

= $500,000 - Dividend in arrears

= $500,000- $120,000

= $380,000

Book Value of Stockholders' equity

Common Stock equity + Balance of retained earnings

= $700,000 + $380,000

= $1,080,000

The book value per share = $1,080,000/ outstanding shares

= $1,080,000/750,000= $1.44

Part 2: To compute the book value of the common stock at December 31, 2020 Preference stock has liquidating value of $106 per share

Stockholder's equity:

Preferred Stock = $500,000

Preferred stock liquidating premium = (106-100) x 5000

= $6 x 5000= $30,000

Common stock = $750,000

Retained earnings: To calculate retained earnings we need to deduct dividends in arrears to prefered stock holders and then ascribe the remaining value to retained earnings.

Dividend in Arrears= 3 years @ 8% interest per year

= 500,000 x 0.08 x 3= $120,000

Remaining earnings for available to common share holders

= Retained earnings balance- net losses from previous years - dividend paid to prferred stock holders - liquadating premium to preferred stock

=$800,000 (net income for 2020)- $40,000 (net loss for 2019) - $260,000 (net loss for 2018)

= $800,000-$40,000-$260,000

= $500,000 - Dividend in arrears - liquidating

= $500,000- $120,000- $30,000

= $350,000

Book Value of Stockholders' equity

Common Stock equity + Balance of retained earnings

= $700,000 + $350,000

= $1,050,000

The book value per share = $1,080,000/ outstanding shares

= $1,050,000/750,000= $1.4

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3 years ago

Knowledge Check 01 On March 1, a designer received a check for $7,500 from a customer for services to be provided after the cust

Yakvenalex [24]

Answer:

The Designer Journal Entry

Date General Journal Debit Credit

July 31 Unearned Revenue $7,500

Design Services Revenue $7,500

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3 years ago

Department B had a beginning inventory of 400 units, 1/4 completed; an ending inventory of 300 units, 2/3 completed, and receive

hjlf

Answer:

The correct answer is D 1,200 units.

Explanation:

The weighted average method includes costs in beginning inventory and current period costs to establish an average cost per unit. The first-in-first-out (FIFO) method keeps beginning inventory costs separate from current period costs and assumes that beginning inventory units are completed and transferred out before the units started during the current period are completed and transferred out.

In this example, the resolution is:

1,000 + (300 × 2/3) = 1,200

7 0

3 years ago

The commercialization of the electric car was supported by the need for a vehicle that polluted less and ____ Select one: a. cos

Rasek [7]

Answer:

did not rely on foreign oil

Explanation:

An electric car is considered as the latest advancement in the field of the automobile industry. The main focus behind introducing the electric car is pollution and dependency on foreign oil.

Both the above factors are important for any developing country. The pollution is main cause of polluting the environment globally hence it is a vital need to introduce something that produce less pollution. As we know when the oil burns it releases the carbon monoxide in the atmosphere which is the main cause behind raising the average temperature of earth atmosphere

On the other side, we have a dependency on foreign oil. We know that the government pays a huge amount of money in purchasing oil from foreign land thus by introducing an electric car we can save this amount of money and can be used for a different purpose

4 0

3 years ago

Read 2 more answers

Steve Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimated

Ghella [55]

Answer:

Steve Company

Entries to record the sale of the tractor will show:

Debit Cash Account with $70,000

Credit Sale of Tractor with $70,000

To record the sale

Debit Accumulated Depreciation with $72,000

Credit Sale of Tractor with $72,000

To record the transfer of accumulated depreciation.

Debit Sale of Tractor with $180,000

Credit Tractor Account with $180,000

To record the transfer of Tractor account.

Debit Loss on Sale of Tractor with $38,000

Credit Sale of Tractor with $38,000

To record the loss on sale of tractor.

Explanation:

1. Depreciation Expense for:

2019 = ($180,000 - 20,000)/10,000 x 2,400 = $38,400

2020 = ($180,000 - 20,000)/10,000 x 2,100 = $33,600

2. Accumulated Depreciation balance = $72,000 ($38,400 + 33,600)

3. Tractor account will be equal to $180,000 and this is transferred out to Sale of Tractor to account for the transaction.

4. Loss on Sale of Tractor = $38,000 ($180,000 - 72,000 - 70,000). The tractor was sold for less than its book value. The book value is the Tractor book value minus the accumulated depreciation.

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3 years ago