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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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g announced that it plans to cut its dividend from $2.50 to $1.50 per share (next year) and use the extra funds to expand its op

mote1985 [20]

Answer:

The value of the Share of Zeke after the new Expansion is $25.

Explanation:

As there was no growth in the dividend before change, Price of the share from a stable dividend payment can be calculated by following formula.

Price = Dividend / Required rate of return

As we have the share price and the dividend amount we need to calculate the required rate of return.

Required rate of return = Dividend / Price

Placing value in the formula

Required rate of return = $2.50 / $25.00 = 0.1 = 10%

After New Expansion

Dividend = $1.50

Growth rate = 4%

The share price can be calculated by the dividend growth formula, as follow

Price of share = Dividend / (Rate of return - growth rate)

Price of share = $1.50 / (10% - 4%)

Price of share = $1.50 / 6%

Price of share = $25

7 0

3 years ago

Using the aging method of accounts receivable method, $5,800 of the company’s Accounts Receivable are estimated to be uncollecti

djverab [1.8K]

Answer:

$5,140

Explanation:

Data provided in the question:

Uncollectible Accounts receivable = $5,800

Balance of Accounts Receivable = $108,000

Allowance for Doubtful Accounts = $660

Credit sales during the year = $166,000

Now,

Bad debt expense = Uncollectible Receivables - Allowance of doubtful debts

Bad debt expense = $5,800 - $660

Bad debt expense = $5,140

6 0

3 years ago

Rising unemployment levels tend to stifle demand for goods and services, which can have the effect of forcing prices downward is

Yuki888 [10]

Answer:

This is called deflation.

Explanation:

Deflation refers to the situation when there is a decline in the general price level, it causes the economy to slow down. It generally happens because of a reduction in the money supply.

The nominal costs of goods and services, labor, capital, etc. decline. But the relative prices, generally remain the same. '

The decline in price is not good for everyone and adversely affects producers. It is also harmful to borrowers. The decline in the price level increases the purchasing power of money.

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3 years ago

Planning practices are different from organization to organization. do you agree? explain

Snowcat [4.5K]

Answer:

yes I agree

Explanation:

because different organizations manufacture or provide different goods and services so it's not possible for them to have the same planning practices take for instance an organization that deals with the provision of food to refugees and an organization that deals with the manufacturing of goods these two organizations will plan differently on how to go about with there businesses.

I hope this helps

5 0

3 years ago

business ethics chapter 4 critics have argued that, from an ethical perspective, altruistic corporate social responsibility (CSR

Gala2k [10]

Answer:

True

Explanation:

Altruistic Corporate Social Responsibility is a philanthropic approach of the company which undermines the interests of the shareholders because such programs are not approved by the shareholders. This clash between the interests of shareholders and the society is the argue that critics quote to protect the shareholders rights.

7 0

3 years ago