1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gemiola [76]
3 years ago
6

This company was incorporated as a new business on January 1, 2019. The company is authorized to issue 50,000 shares of $5 par c

ommon stock and 10,000 shares of 6%, $10 par, cumulative, participating preferred stock. On January 1, 2019, the company issued 8,000 shares of the common stock for $15 per share and 2,000 share of the preferred stock for $30 per share. Net income for the year ended December 31, 2019 was $375,000. Refer to Lanier Tech. What is the amount of the company's total capital stock at December 31, 2019?
Business
1 answer:
weqwewe [10]3 years ago
8 0

Answer:

Amount of the company's total capital stock at December 31, 2019:

Common stock = 8,000 x $15 =                 $120,000

Preferred stock = 2,000 x $30 =               <u>$60,000</u>

Total issued share capital                          $180,000

Add: Net income at 31 December, 2019    <u>$375,000</u>

Total capital stock                                        <u>$ 555,000</u>

<u />

Explanation:

Total capital stock is the aggregate of par value of common stock, par value of preferred stock and net income.

You might be interested in
"What is Al’s total revenue? 3 pts) B. What are Al’s explicit costs? In numbers (3 pts) C. What is his accounting profit? In Num
erik [133]

Answer:

A. $1,020,000

B.$680,000

C.$340,000

D.$95,000

E.$245,000

Explanation:

A. Calculation for Jon’s total revenues

Using this formula

Jon's total revenue = Amount of fees per person × Number of persons

Let plug in the formula

Jon's total revenue = $1,200 × 850

Jon's total revenue=$1,020,000

B. Calculation for Jon’s explicit costs

Using this formula

Explicit costs = Amount of money that goes for instructors, maintenance, equipment,insurance, depreciation ×Number of persons

Let plug in the formula

Explicit costs= $800 ×850

Explicit costs =$680,000

C. Calculation for the his accounting profit

Using this formula

Accounting profit = Amount of Revenue - Explicit costs

Let plug in the formula

Accounting profit= $1,020,000 - $680,000 Accounting profit=$340,000

D. Calculation to List 2 in numbers 2 implicit costs that Jon has not included

Based on the information given we were told that he is foregoing an amount of $92,000 as wage and 1.5% interest on his amount of $200,000 which is a corporate bonds to start the business.

Hence

Jon total opportunity costs = $92,000 + (1.5%×$200,000)

Jon total opportunity costs = $92,000 +$3,000 Jon total opportunity costs=$95,000.

E. Calculation for Jon’s pure economic profit (or loss) in numbers

Using this formula

Economic profit = Accounting profit - opportunity costs

Let plug in the formula

Economic profit = $340,000-$95,000

Economic profit = $245,000

8 0
3 years ago
Loran's pretax accounting income in 20X1 is $100,000. Loran had bad debt expense for financial reporting purposes of $14,000 in
stira [4]

Answer:

$2,800

Explanation:

Particulars                                                                       Amount

Favorable temporary difference at the end of 20X2   $7000

* Income tax rate                                                             <u>   40%  </u>

Deferred tax asset account at the end of 20X2         <u>$2,800</u>

6 0
3 years ago
Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2019 Dec. 31, 2018 Current ass
Y_Kistochka [10]

Answer:

1. 1.5 Times

2.$100,000

3.0.775 Times

4.$75,000

5.$100,000

Explanation:

Liquidity ratios can be found by just simply putting the given values in their appropriate formulas. All you have to memorize is the simple formulas

1.Current Ratio  

CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES

CURRENT RATIO = $300,000/$200,000

CURRENT RATIO = 1.5 Times

2. Working Capital

WORKING CAPITAL= CURRENT ASSETS- CURRENT LIABILITIES

WORKING CAPITAL= $300,000 - $200,000

WORKING CAPITAL= $100,000

3. Acid ratio

ACID RATIO = CURRENT ASSETS - INVENTORY - PREPAID EXPENSES/CURRENT LIABILITIES

ACID RATIO = ($300,000 - $110,000 - $35,000)/$200,000

ACID RATIO = 0.775 Times

4. Receivable turnover

RECEIVABLE TURNOVER = CREDIT SALES/AVERAGE RECEIVABLE

RECEIVABLE TURNOVER = $750,000/$75,000

RECEIVABLE TURNOVER = 10 Times

<u>Working</u>

AVERAGE RECEIVABLE = (Opening receivables+Closing receivables)/2

AVERAGE RECEIVABLE = ($55,000 + $95,000) / 2 = $75,000

5. Inventory Turnover

INVENTORY TURNOVER = COST OF GOODS SOLD / AVERAGE INVENTORY

INVENTORY TURNOVER = $400,000 / $100,000

INVENTORY TURNOVER = 4 Times

<u>Working</u>

AVERAGE INVENTORY = (Opening inventories+Closing inventories)/2

AVERAGE INVENTORY = (110,000 + 90,000)/2

AVERAGE INVENTORY = $100,000

3 0
3 years ago
I was banned until I wasn't banned and I'm still here. How???
Valentin [98]

Answer:

waaaaassssssupppppppppppp

7 0
3 years ago
Read 2 more answers
The objective of financial reporting is to provide useful financial information to capital providers.
Amiraneli [1.4K]

i think it is B

Explanation:

6 0
3 years ago
Other questions:
  • One of the important questions Jerome needs answered about his potential career is whether he will be working outdoors, because
    8·2 answers
  • Which pair of Information Technology career fields may require work to be done outside of normal office hours?
    14·1 answer
  • "Division A, which is operating at capacity, produces a component that currently sells in a competitive market for $25 per unit.
    6·1 answer
  • Waterway Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $145,600 Allowance
    7·1 answer
  • Record the following process costing transactions in the general journal
    13·1 answer
  • Indicate whether each of the following cost of an automobile manufacturer would be classified as direct materials, direct labor,
    10·1 answer
  • In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 180 million shares of
    5·1 answer
  • In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal
    8·1 answer
  • An employee who works from home is participating in what activity?​
    14·2 answers
  • Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competit
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!