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tia_tia [17]
3 years ago
9

Lewelling Company issued 101,000 shares of its $1 par common stock to the Michael Morgan law firm as compensation for 4,100 hour

s of legal services performed. Morgan’s usual rate is $100 per hour. By what amount should Lewelling’s paid-in capital - excess of par increase as a result of this transaction?
Business
1 answer:
GenaCL600 [577]3 years ago
3 0

Answer:

Paid in capital excess of par is $$309,000

Explanation:

<u>Journal Entries</u>

Debt: Legal services (4,100 hours × $100 per hour)  = $410,000

Credit: Common stock (101,000 shares × $1 par)  = $101,000

Credit: Paid-in capital - excess of par (Remainder)  = $309,000

To record the 101,000 shares compensated by 4,100 legal hours with $1 par value)

In the above transaction common stock issued in excess of par for legal services as compensation instead cash. Hence "legal services" have been debited as issuing company benefited for legal services. "Common stock" and "paid in capital in excess of par" has been credited as this issuing company issuing common stock.

Paid in capital excess of par is $$309,000

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When preparing her monthly budget, marge kent has a total spending allowance of $4,600. each month she pays $1,200 in rent, $60
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Russell Co. reports sales revenue of $30,600 and interest revenue of $5,600. Its comparative balance sheet shows that accounts r
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Cash provided by operating activities $39,650

Explanation:

The computation of the cash provided by operating activities under the direct method is as follows:

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6 0
2 years ago
Yong produces silk and polyester fabrics. Management has compiled the following unit selling price and unit cost information for
monitta

Answer:

$9.05

Explanation:

the information about prices and costs is missing, so I looked it up:

contribution margin per yard for silk = $18 - $4.10 - $2.70 - $3.51 - $0.90 = $6.79

contribution margin per yard for polyester = $10.20 - $0.80 - $2.90 - $3.77 - $0.60 = $2.13

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8 0
3 years ago
Your parents will retire in 19 years. They currently have $300,000, and they think they will need $1 million at retirement. What
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Answer:

rate = 6.54%

Explanation:

we need to find the rate at which a capital of 300,000 becomes 1,000,000 in a period of time of 19 years.

<u>So we build the following equation:</u>

300,000 (1+r)^{19} =1,000,000

(1+r)^{19} =1,000,000 \div 300,000

r=\sqrt[19]{1,000,000 \div 300,000}-1

rate = 0.065417765 = 6.54% after rounding

This will be the rate my parent will require to generate 1,000,000 in 19 years with their current savings of 300,000.

3 0
3 years ago
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