1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alexandr402 [8]
3 years ago
13

Bramble Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of

$110,000. (a) Prepare the journal entry for the issuance when the market price of the common shares is $180 each and market price of the preferred is $225 each. (b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $190 per share.
Business
1 answer:
Ket [755]3 years ago
5 0

Answer:

(A)

cash               110,000  debit

      common stock              5,000 credit

      additional paid-in CS   81,086 credit

      preferred stock            10,000 credit

      additional paid-in PS   13, 914 credit

(B)

cash               110,000  debit

      common stock               5,000 credit

      additional paid-in CS   90,000 credit

      preferred stock             10,000 credit

      additional paid-in PS      5,000 credit

Explanation:

Market Value

500 x 180 = 90,000  0,7826 CS

100 x 225 = 25,000  0, 2174 Preferred

total             115,000

Issuance:    110,000

Preferred: 21.74% of 110,000 = 23,914

face value:            100 x100     10,000

additional paid-in                     13,914

Common: 78.26% of 110,000 = 86,086

face value:          500 x 10      =   5,000

additional paid-in                        81,086

If we can only determinate the common stock:

total issuance - common stock = preferred stock

110,000 - 190 x 500 = 110,000 -  95,000 = 15,000 preferred stock

additional paid-in CS: 110,000 - 5,000 = 105,000

additional paid-in PS: 15,000 - 10,000 = 5,000

You might be interested in
Why is it important for a nail care provider to learn and understand the structure and function of the nails?
melomori [17]

Answer:

Learning to know and recognize the Anatomy of the Nail is very important, whether for those who work in the Nails sector and every day must take care (even if only Aesthetically) of the Nails of their Customers, and for those who are simply passionate to the topic or prefer to independently take care of their Hands and Feet!

Explanation:

3 0
2 years ago
Mike’s Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. I
Stolb23 [73]

Answer:

Mike's Motors Corp.

Cash Budget for July, August, and September:

                                          July           August        September       Total

Beginning balance        $32,000     $30,000         $30,000       $32,000

Cash receipts                  83,000      109,000          148,000       340,000

Bank borrowings            26,000           0                   0                  26,000

Total receipts                 141,000       139,000         178,000      $398,000

Cash Payments              111,000        97,900          125,400        334,300.00

Interest                                                    520                 308.40          828.40

Loan repayment                                 10,580            15,420          26,000.00

Total payments              111,000      109,000            141,128.40    361,128.40

Minimum cash balance 30,000       30,000             36,871.60     36,871.60

Explanation:

a) Data and Calculations:

            Cash  Receipts   Cash  Payments

July            $ 83,000        $ 111,000

August        109,000           97,900

September 148,000          125,400

Minimum cash balance = $30,000

Interest on borrowings = 2% per month

July ending:

Borrowing to maintain minimum cash balance = $26,000

Interest for August = $520 ($26,000 * 2%)

August ending:

Loan balance = $15,420 ($26,000 - $10,580)

Interest for September = $308.40 ($15,420 * 2%)

8 0
3 years ago
Time Again LLC produces and sells a mantel clock for $150.00 per unit. In​ 2017, 43,000 clocks were produced and 36,000 were sol
Vedmedyk [2.9K]

Answer:

Unitary cost= $118

Explanation:

Giving the following information:

Production= 43,000

Direct materials $43.00 per unit

Direct manufacturing labor $8.00 per unit

Variable manufacturing costs $4.00 per unit

Fixed manufacturing costs $63.00 per unit

<u>The absorption costing method includes all costs related to production, both fixed and variable.</u> The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary cost= 43 + 8 + 4 + 63

Unitary cost= $118

7 0
3 years ago
Ralph’s Hardware updated its accounting system and agreed to purchase a computer system from a manufacturer, Bits and Bytes (BB)
Andrej [43]
Given:
<span>Fact 1: During contract negotiations, BB’s sales representative promised that the system was “A-1” and “perfect.”
</span><span>Fact 2: The written contract, which the parties later signed, disclaimed all warranties, express and implied. 
</span><span>Fact 3: After installation the computer produced only random numbers and letters, rather than the desired accounting information

The express warranty is given in Fact 1 where the Sales Rep promised that the system was "A-1" and "perfect". There is a breach in express warranty here IF the written contract also expresses the same promises. 

However, the written contract </span>disclaimed all warranties, express and implied. AND BOTH PARTIES SIGNED THIS CONTRACT. It implies that the buyer has read through the contract and has agreed with what is written in the contract. Thus, they can't file a suit against BB for breaching an express warranty since the written and signed contract has already disclaimed all warranties. 

4 0
3 years ago
All of the following statements are correct about management by exception except it
noname [10]

Answer:

<u>means that management has to investigate every budget difference.</u>

Explanation:

  • Management has an exception as the practice f examining the financial and operational results of a business. Only bringing the issues to the attention of management when substantial differences in budgets or within the expected amount.
  • The concept assumes that business managers handle cases that derive them from the norms and have the main disadvantage of calculation mistakes that results from a large variety of data and finding errors to be consuming activity.
3 0
3 years ago
Other questions:
  • According to the affordable care act new health insurance marketplaces are established by the
    13·1 answer
  • Munster Company reports the following net cash in its statement of cash flows: net inflow from operating activities: $200; net o
    12·1 answer
  • On a given trading day, 700 stocks advanced and 1,200 stocks declined. The volume of declining stocks was 280 million while the
    12·1 answer
  • Which one of the following is not a method used by companies to accelerate cash receipts? Offering discounts for early payment A
    14·1 answer
  • Bubble-Up, Inc., is a small manufacturer of educational toys for children under age 10. It has co-existed with three other compe
    9·1 answer
  • CAPM and Valuation. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year for
    13·1 answer
  • One example of the role of democracy in education is
    15·1 answer
  • Aber Inc. plans to develop a shopping center. In the first quarter, they spent the following amounts: Acquisition of land $15000
    7·1 answer
  • When does the company go in loss​
    7·1 answer
  • The seller of product a has no idle capacity and can sell all it can produce at $60 per unit. outlay (variable) cost is $12. wha
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!