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ryzh [129]
3 years ago
5

A corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the

first month of operation, the corporation issued 300 sharesto its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include _________.
Business
1 answer:
Vitek1552 [10]3 years ago
5 0

Answer:

The entry to record the payment of attorneys fees by a way of share issue will be:

Dr  Organization expense      $5000

Cr  Share capital                                     $3000

Cr  Share premium                                 $2000

Explanation:

Firstly, the fees payable to the attorneys is $5000,hence organization expense is debited with $5000.

However, the value of the shares given is 300*$10 i.e $3000,as a result, the attorneys have indirectly paid $2000 more for the shares, the excess is recorded in paid in share capital in excess of par value account or a share premium account.

The rationale for the entries is that expense account takes debit when it increases and capital account a credit.

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Coachlight Inc. has a periodic inventory system. The company purchased 205 units of inventory at $9.50 per unit and 310 units at
lukranit [14]

Answer:

Weighted average cost per unit = $10.10

Explanation:

We know,

Under weighted average unit cost, the cost for purchased inventory = Total inventory costs ÷ total inventory in units

Given,

Total inventory in units = 205 + 310 = 515 units

Total inventory costs = (205 units × $9.50) + (310 units × $10.50)

= $1,947.50 + $3,255 = $5,202.50

Therefore,

Weighted average cost per unit = $5,202.50 ÷ 515 units

Weighted average cost per unit = $10.10

Therefore, the company will use this cost per unit to determine cost of goods sold and ending inventory.

5 0
3 years ago
A lessor is a party who acquires a right to the possession and use of goods under a lease.a) trueb) false
Anika [276]

Answer: FALSE

         

Explanation: In simple words, a lessor refers to an individual who , under a contract of lease, lets another individual to use his or her assets in return of any kind of rent or one time payment.

The individual who pays the rent in return of right to use the asset of the lessor is called a lessee. Lessor is actually the owner of the asset.

Hence the given statement is false.

6 0
4 years ago
Judy Olsen, Kristy Johnston, and their mother, Joyce Johnston, owned 78 acres of land on Eagle Creek in Montana. When Joyce died
zlopas [31]

Answer:

The court will rule in favor of Judy

Explanation:

Kristy made a valid offer to Judy and Judy accepted it before Dave accepted Kristy´s offer so Judy's acceptance should prevail.

In the offer letter, Kristy told Judy to "please respond to Bruce Townsend", but she did not specify that the only proper mode of acceptance was the response to Bruce. Since she did not specify that Judy could not respond directly to her, Judy's letter of acceptance to Kristy's offer is valid.

Kristy should have been more specific in stating that the only proper mode of acceptance was a response to Bruce.

8 0
3 years ago
Suppose that in year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next ye
mixas84 [53]

Answer:

The value of nominal GDP in years 1 and 2 respectively is:

  • $900 and $1,077.50.

Explanation:

real GDP is based on the prices of a base year and it is affected by the total output of goods and services, not the nominal value of the goods and services.

real GDP year 1 = ($3 x 100 balls) + ($8 x 75 pizzas) = $900

real GDP year 2 = ($3 x 110 balls) + ($8 x 80 pizzas) = $970

nominal GDP year 1 = ($3 x 100 balls) + ($8 x 75 pizzas) = $900

nominal GDP year 2 = ($3.25 x 110 balls) + ($9 x 80 pizzas) = $1,077.50

4 0
3 years ago
One of the reasons it has been so difficult for Congress to bring federal spending under control is because
Gnoma [55]

Answer:

the middle one

Explanation:

8 0
3 years ago
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