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3 years ago

An investment of cash by stockholders into the business will

Business

1 answer:

arsen [322]3 years ago

5 0

Answer:

Increase shareholder's equity

Explanation:

When investors provide cash(capital) to a business through purchasing the company's shares, this increases the amount of their ownership hence increases the equity. Equity amount is recorded in the balance sheet. Another way a company raises capital is by borrowing debt which increases the amount of its liability.

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Havermill Co. establishes a $330 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei

slavikrds [6]

Answer: a) Debit to Office Supplies for $81.

Explanation:

Office Supplies of $81 were used in the month of September. When replenishing the fund, this asset will be accounted for by being debited and cash will be credited to reflect the reason the cash account is being reduced.

The Journal entry for the replenishment will be;

DR Office supplies Account ......................................$81

DR Merchandise inventory Account ........................$153

DR Misc. expense Account........................................ $30

CR Cash account ......................................................................$264

5 0

4 years ago

the risk-free rate is 3% and you believe that the S&P 500's excess return will be 10% over the next year. If you invest

horrorfan [7]

Answer:

The expected excess return will be 11.4%

Explanation:

The S&P 500's excess return is the market return (rM). Using the CAPM model or the SML approach, we can calculate the required/expected rate of return on the stock we are investing in.

The expected rate of return is,

r = rRF + β * (rM - rRF)

Thus, return on the invested stock will be:

r = 0.03 + 1.2 * (0.1 - 0.03)

r = 0.114 or 11.4%

7 0

3 years ago

Shelly manages a jewelry store that offers a range of different designs to customers. She recently received new inventory of som

sweet-ann [11.9K]

Answer:

The correct option is D

Explanation:

As Shelly who manages the jewellery store received an inventory, which wants to display in her store. So, in order to make the design visible to every customer who visit her store or passes by her store, will see the design. Therefore, she should place the design at the eye level so that every customer could easily see the design.

4 0

3 years ago

Jacob and Harry are business partners in a company that manufactures portable solar panels. They initially started the business

klemol [59]

Answer:

C. Equity Financing

Explanation:

Based on all the details and financial steps that Jacob and Harry have undergone it seems that they are using Equity Financing. This type of financing refers to selling stocks of the company in order to raise capital, and making the investors partial owners of the company. Which is what Jacob and Harry seem to be doing by selling stocks of the company to family and friends in order to raise the capital they need to fund their business.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0

3 years ago

Hydro Systems has 15-year bonds outstanding with a coupon rate of 6 percent. Interest is paid annually. The face amount of each

Leya [2.2K]

Answer:

A) 5.22 percent

Explanation:

The Pretax cost of debt is the Yield to maturity (YTM) of bond.

Using a financial calculator , you can solve for the YTM with the following inputs;

Face value ; FV = 1000

Maturity of bond; N = 15

Annual coupon payment; PMT = coupon rate * Face value = 6%*1000 = 60

Current price; PV = $1,080

then compute annual interest rate; CPT I/Y = 5.22%

7 0

3 years ago