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3 years ago

On April 1, 10,000 shares of $20 par common stock were issued at $24.

Business

1 answer:

Ann [662]3 years ago

4 0

Answer:

The journal entry to record this transaction would be:

April 1, 10,000 shares issued

Dr Cash 240,000

Cr Common stock 200,000

Cr Additional paid in capital 40,000

The balance sheet is affected:

Assets = Liabilities + Stockholders' equity

Cash = NA Common stock APIC

$240,000 $200,000 + $40,000

increases increases increases

The cash flow statement is also affected since cash from financing activities increases by $240,000. The statement of shareholders' equity is also affected because equity increases by $240,000.

The income statement is not affected.

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Trimble Graphic Design receives $1,800 from a client billed in a previous month for services provided. Which of the following ge

wel

Answer:

Explanation:

The journal entry is presented below:

Cash A/c Dr $1,800

To Accounts receivable A/c $1,800

(Being the cash is received)

Since the cash is received so we debited the cash account and there is a decrease in account receivable so this account should be credited. Both the accounts are recorded at $1,800 each.

4 0

3 years ago

Laura says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than the

Andrews [41]

Answer:

The correct answer is A. Both Laura and Cassie are correct.

Explanation:

Since Laura says that the present value of $ 700 to be received one year from today if the interest rate is 6 percent is less than the present value of $ 700 to be received two years from today if the interest rate is 3 percent, and Cassie says that $ 700 saved for one year at 6 percent interest has a smaller future value than $ 700 saved for two years at 3 percent interest, to determine who is right, the following calculations must be performed:

700 x 1.06 = 742

700 x 1.03 ^ 2 = 742.63

Therefore, both Laura and Cassie are correct in their claims.

5 0

3 years ago

A firm is considering expanding its current operations and has estimated the internal rate of return on that expansion to be 12.

andrew-mc [135]

Answer:

expansion should be undertaken as it has a positive net present value

7 0

3 years ago

Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se

iVinArrow [24]

Answer:

Coupon rate = 5.8%

Explanation:

The price of a bond is the present value (PV) of the future cash flows discounted at its yield.

So we will need to work back to ascertain the coupon rate

Step 1

Calculate the PV of redemption value and PV of interest payments

PV of Redemption

= 1.067^(-5) × 1000

=723.06

PV of the annual interest rate

= price of the bond - PV of redemption

= $964- 723.06

= 240.934

Step 2

Calculate the interest payment

Interest payment = PV of redemption value / annuity factor

Annuity factor =( 1 -(1+r)^(-n) )/r

Annuity factor at 6.7% for 5 years

Factor =( 1-1.067^(-5) )/0.067

= 4.1333

Interest payment = PV of the annual interest rate / Annuity factor

Interest payment=

=240.93/4.1333

=58.290

Step 3

Calculate the coupon rate

Coupon rate = interest payment/ par value

Coupon rate = (58.290/1000) × 100

= 5.8%

Coupon rate = 5.8%

4 0

3 years ago

Henrietta is interested in moving her organization toward being a true learning organization. what might be one way in which she

S_A_V [24]

If Henrietta wants to move her organization closer to being a true learning organization, she should redesign the structure. These changes will effect how the company is run and will improve the overall efficiency, productivity, and workflow of the company.

6 0

3 years ago