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torisob [31]
2 years ago
13

Sorrento Skies Corporation issues 16.000 shares of $100 par value preferred stock for cash at $120 per share. The entry to recor

d the transaction will consist of a debit to Cash for $1.920,000 and a credit or credits to a. Preferred Stock for $1,920,000. b. Paid-in Capital from Preferred Stock for $1.920,000 c. Preferred Stock for $1,600,000 and Retained Earnings for $320,000 d. Preferred Stock for $1,600,000 and Paid-in Capital in Excess of Par-Preferred Stock for $320,000
Business
1 answer:
raketka [301]2 years ago
7 0

Answer:

The correct option is D,credit to Preferred Stock for $1,600,000 and Paid-in Capital in Excess of Par-Preferred Stock for $320,000

Explanation:

The total par value of the preferred stock issue is $100 multiplied by 16,000 which gives $1,600,000 while the remaining $20 per share multiplied by 16,000 that gave rise $320,000 goes to the credit of paid-in capital in excess of par-preferred stock account.

Option A is wrong because the preferred has a par value of $100 hence the total cash proceeds cannot be posted to preferred stock account alone.

Option B is wrong because the excess of $20 per share cannot be posted to retained earnings since it is net income

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Peng Company is considering an investment expected to generate an average net income after taxes of $3,300 for three years.
nikdorinn [45]

Answer:

3482.12

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow = net income + depreciation = 16,200 + 3300 = 35,700

($56,100 - $7500) / 3 = 16,200

Cash flow in year 0 = 56,100

cash flow in year 1 and 2 = 35700

cash flow in year 3 = 35,700 + 7500

i = 5%

NPV =

3 0
3 years ago
Maurice and Stanley's train store has grown to the point that they need more capital to expand the current location and to open
harina [27]

Answer:

b. sole proprietorship.

Explanation:

  • A sole proprietorship is a single business entity that is responsible for all profits and losses and may use a sole name or a business name as a private company is known for its flexibility and thus does not need to take large loans from the government.
  • Have an advantage of less administrative paperwork and record-keeping than a corporation, have less risk of being stolen by investors.
6 0
3 years ago
The Securities Act of 1933 does not apply to the issuance of securities under $5 million. Question 4 options: True False
kogti [31]

Answer:

False

Explanation:

The Securities Act of 1933 requires the registration of all the securities issued and sold ob public markets. This act had some exemptions:

  1. private offerings (if the securities were offered to a certain group of persons and/or institutions)
  2. offerings of a limited size: a very small issuance would be excluded, but remember that $5 million of 1933 are equivalent to more than $98 million today (average annual inflation of 3.48%)
  3. securities issued by government entities
  4. securities issued on intrastate offerings (only traded within a given state)

3 0
2 years ago
a guitar manufacturing company, launched 1000 high-quality, limited-edition guitars worldwide at a premium price of $10,000 per
larisa [96]

Answer:

skimming prices

Explanation:

Based on the scenario being described it can be said that it can be concluded that Timber Guitars has adopted the strategy of skimming prices. This is a a pricing strategy in which a company or marketer sets a relatively high starting price for their products in the beginning of introducing it into the market, then only after some time has passed do they begin to lower prices slowly. Which is what Timber Guitars has done by placing the guitar at a very high price and only lowering it after a good quantity were sold.

7 0
3 years ago
When comparing Real Estate Investment Trusts (REITs) to Real Estate Limited Partnerships (RELPs), all of the following statement
Natalija [7]

Answer: option C is correct

Explanation:

Real Estate Investment trusts company, REITs do not allow for flow through of loss. Real estate Investment Trusts,REITs owns and manage real estate.

Real Estate Investment Trust company, REITs cannot pass losses to their shareholders, therefore, they invest solely in limited partnerships.

Real Estate Investment trust, REITs also do invest in securities and shares.

But, Real Estate Limited Partnerships company, RELPs allow both for flow through through of loss and for flow through of gain

6 0
3 years ago
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