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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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Which statement best describes an authoritarian style of communication
sveta [45]

Answer:

High task-low relationship behavior, initiating a closed presentation

Explanation:

Authoritarian communication style, which is also popularly known as autocratic leadership is a type of communication style in which the leader holds rigid control over the team as he/she is directly responsible for taking decisions, regulating the actions, rules, methodologies. This is a 'high task and low-relationship behavior' communication style and initiates a closed control and presentation of procedures and policies. The expectations are very clear and close supervision of tasks is made by the leader to ensure maximum productivity.

8 0
3 years ago
Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $575,000. They moved into the home on February 1 of year
Julli [10]

Answer:

Steve and Stephanie Pratt

a. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

b. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

c. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

d. The amount of gain on the sale of the home that the Pratts are required to include in their taxable income is:

= $352,500

Explanation:

a) Data and Calculations:

Initial purchase cost of a home in Spokane = $575,000

Selling price of the home on June 30 of Year 5 = $927,500

Recognized gains = Selling price of the home Minus Initial Purchase Cost

= $352,500 ($927,500 - $575,000)

8 0
3 years ago
The Permanent School Fund distributes money to school districts across the state based on what two factors?
bogdanovich [222]

Answer:

Explaination given below:

Explanation:

The Permanent School Fund distributes money to school districts across the state based on the two factors as follows:

* student attendance

           &

* guaranteed bonds issued by local school boards

The Permanent School Fund was organized in the year around 1854. The central goal of the Permanent School Fund is to support primary as well as secondary schools in the state.

5 0
3 years ago
Asymmetric information occurs when A. everyone has the same information. B. people engaging in a transaction are uncertain about
melisa1 [442]

Answer:

Option (D) is correct.

Explanation:

Asymmetric information occurs in a situation in which one of the two parties involved in a particular transaction have more information than the other party. This problem mostly occurs in a health insurance market where the a person to be insured have more information about his health than the insurance company.

Asymmetric information will result in two problems are as follows:

(i) Adverse selection

(ii) Moral hazard

8 0
3 years ago
Suppose the reserve requirement is 5​%. What is the effect on total checkable deposits in the economy if bank reserves increase
madam [21]

Answer:

D. ​$1 comma 000 billion increase

Explanation:

The reserve requirement ratio determines the total amount of checkable deposits a bank must keep.

In this case the reserve ratio it's 5%, which means that the total amount of deposits cannot exceed an amount equal to 20 times its reserves.  

If the reserves increase by $50 billion then $50/0,05 = 1.000 billion increase.

5 0
3 years ago
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