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monitta
3 years ago
8

. A company is authorized to issue 750,000 shares of $5 par value common stock. Prepare journal entries to record the following

selected transactions that occurred during the company's first year of operations:
Jan. 10 Sold 102,000 shares of common stock for $8 cash per share.
jan. 15 Exchanged 10,000 shares of common stock for equipment with a market value of $80,000.
Feb. 1 Exchanged 500 shares of common stock for $3,000 of legal services Incurred during the company's organization.
Business
1 answer:
Rudiy273 years ago
5 0

Answer:

The answers are:

<u>January 10</u>

Cash                                          $816,000

Common stock                                                  $510,000

Contributed capital in excess

of par value, common stock                             $306,000

<u>January 15</u>

Equipment                                   $80,000

Common stock                                                    $50,000

Contributed capital in excess

of par value, common stock                               $30,000

<u>February 1</u>

Organizational expenses              $3,000

Common stock                                                    $25,000

Contributed capital in excess

of par value, common stock                                    $500

Explanation:

Contributed capital in excess of par value is the amount of money (or other assets) over the par value of stock (in this case $5 per common stock) that the company received form shareholders in exchange for stock.

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Answer:

The acquisition of businesses that gives the company control of supply chains is vertical integration.

Explanation:

Vertically incorporated corporations acquires either its customer's business or its supplier's business to have a control of supply chains and distribution channels.

The customer's business acquisition is often referred to as forward integration and the movement of a company to acquire its supplier's business is often referred to as backward integration.

6 0
3 years ago
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During April, the production department of a process operations system completed and transferred to finished goods 31,000 units
Shalnov [3]

Answer:

E) $3.00.

Explanation:

The computation of direct materials cost per equivalent unit is shown below:-

Equiavent unit with respect to material = $31,000 + $88,000 + $30,000

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Total direct material cost = $109,600 + $336,800

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3 years ago
Scenario: Fiscal Policy Consider the economy of Arcadia. Its households spend 75% of increases in their income. There are no tax
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Answer:

less than the government spending multiplier

Explanation:

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Percentage spends  by a households for the increase in the income = 75%

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The government multiplier is = $\frac{1}{1-0.75}$

                                                $=\frac{1}{0.25}$

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The tax multiplier is = $\frac{c}{1-c}$

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a contraction period is characterized by the following attributes: businesses that are operating lower productive capacity, unem
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There are four stages of economic cycle :

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It is very important to insight the economic cycle for taking major decisions regarding investment and business.

This cycle goes in cyclic pattern.

The investors will invest more in the contraction period because rates were relatively low in this stage.

To know more about economic cycle:

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d. time period and b. internal factors
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