Issuing 25,000 shares of $5 par value common stock for $20 per share.
Cash (25,000 x 20) 500,000
Common stock (25,000 x 5) 125,000
Additional Paid-In Capital (25,000 x 15) 375,000
The net loss will only be reflected as a deduction from retained earnings. Retained earnings is where the net income or net loss of the company will be under in the year-end balance sheet. It is the balance of all income and loss the company has since its inception.
Answer: Accountants play major role in firms in handling financial records and auditing. Managers know financial information based on either background knowledge or learning on the job
Explanation:
The accountants are valuable to the organization because they monitor the monetary information that concerns the firm, they handle how cash come in and keep track of how they are spent, all these makes them valuable even to the extent of auditing information as regarding the firm. Managers might understand financial information either based on how they monitor what occurs in the organization or what they learnt in from college. But it's unsafe for the managers to handle financial situation without the aid of a professional accountant.
Answer: E. switch to a multiple supplier approach
Explanation:
Since the company has had issues with inventory in the past, then the recommendation of the production manager should be that the company should switch to a multiple supplier approach.
By switching to multiple supplier, the company can compare prices and also have alternative suppliers to call in case there's a challenge with a particular supplier.
Answer:
$115.38
Explanation:
Since Nancy only has to pay 20% of her health insurance premium, her total biweekly deduction = $3,000 / 26 weeks = $115.38
Generally health insurance premiums are paid on a monthly basis, but lately some health care providers are starting to take quarterly, semiannual and even annual payments. The thing is that you always pay in advance, so generally people choose to pay it with their paychecks. It makes sense, since unless you earn a lot of money, a $3,000 payment would represent a large portion of your salary.
Answer:
A, B and D
Explanation:
Expanding the money supply is an exercise of expansionary monetary policy.
This decision will first allow our tech startup to acquire cheaper loans and expand our operations, this expansion in operations will result in new employment opportunities and hence as a result, unemployment will be reduced assuming this is a general trend in the economy.
This decision also directly reflects an increased investment and hence the GDP on the whole and the investment part of GDP would both increase,
GDP = C + I + G + (X - M), where I = investment.
This change in macro economy will increase aggregate demand due to expansionary effects. Increase in imports is not conclusive as it may or may not happen depending upon the demand state.
Hope this helps.
