Answer:
B. Debit cash $27,500 ; Credit common stock $27,500
Explanation:
The journal entry to record the transaction is;
Cash account Dr $27,500
(2,500 shares × $11)
To Common stock account Cr $27,500
Cash is an asset hence debited because it decreases as it was used to pay for bills while common stock is credited because it increases shareholder's equity.
the answer is b message me if it is wrong
Answer:
First let us define the nature of each of the following as per Balance sheet of a company:
Payroll payable- Liability
FICA taxes withheld- Liability
Federal taxes- Liability
410(k)- Liability
Explanation:
Effect of Transaction on assets and liabilities:
- Payroll expense Debit will have no impact
- Payroll payable, Federal taxes, FICA and 401(k) will increase the current liability.
- And when they are subsequently paid, cash will be credited hence decreasing the current assets and all these current liabilities shall be debited, hence decreasing the current liability portion.
To have the ability to sell off individual lots before paying off the entire balance due, the developer will need to obtain a blanket mortgage.
<h3>
What is
a blanket mortgage?</h3>
- A blanket mortgage is a single mortgage that covers many properties and serves as security for the loan.
- Real estate developers and larger investors frequently purchase multiple properties at once, thus a blanket mortgage allows them to consolidate such deals into a single loan.
- Consider the money you'd save on closing fees, both for the original mortgage and any subsequent refinances.
- Refinancing from numerous loans to a single blanket mortgage may also result in lower monthly payments, which may increase your cash flow.
Therefore, to have the ability to sell off individual lots before paying off the entire balance due, the developer will need to obtain a blanket mortgage.
Know more about a blanket mortgage here:
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Answer:
$5,100
Explanation:
The computation of the investor received amount is shown below:
= Corporate bond face value + corporate bond face value × coupon rate × number of months ÷ total number of months in a year
= $5,000 + $5,000 × 4% × 6 months ÷ 12 months
= $5,000 + $100
= $5,100
On Semi annual payments we divide the interest rate by 2 or we considered the 6 months and divide it by the total number of months in a year
