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Gnoma [55]
3 years ago
8

Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During

the first month of operation, the corporation issued 270 shares to its attorneys in payment of a $4,700 charge for drawing up the articles of incorporation. The entry to record this transaction would include:
Business
1 answer:
dimulka [17.4K]3 years ago
8 0

Answer:

paid in capital in excess of par value = $2000

and There will be a debit to Organisation expenses for $4,700

Explanation:

given data

charter authorized = 100,000 shares

common stock = $10 par value

issued  = 270 shares      

payment = $4,700        

solution

we know here that

Paid up value of the stock = $10 per share

and here shares issue to the attorney satisfying the organisation expenses is 270 shares

so common stock = 270 shares × $10

common stock =  $2700

so paid in capital in excess of par value = $2000

and There will be a debit to Organisation expenses for $4,700

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Present value PV= FV(1/(1+r)^n)

PV = Present Value

FV = Future Value

r= rate

n= number of years

Just plug in the numbers and calculate.

7 0
3 years ago
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Bill Wessels has reviewed the strategic plan from corporate headquarters and is considering how to develop an annual business pl
LekaFEV [45]

Answer:

Bill is probably a(n)

SBU manager.

Explanation:

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5 0
3 years ago
If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft, the United S
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If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft, the United States may work through WTO in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Explanation:

The World Trade Organisation (WTO) is the only international organisation that follows global trade law. It primarily ensures trading is as easy, consistent and free as possible.

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3 0
3 years ago
Plutonic Inc. had $400 million in taxable income for the current year. Plutonic also had an increase in deferred tax liabilities
Sergeu [11.5K]

Answer:

Increase of 130 million

Explanation:

In this question, we are looking to evaluate what has happened to change in deferred tax assets. We proceed as follows;

Firstly, we calculate the current tax.

Mathematically = 40% of 400 million = 40/100 * 400 million = 160 million

Now, as we can see in the question, a decrease in deferred tax asset resulted in an increase in tax expense to a tune of $50 million

This brings the total tax expense to 160 million + 50 million = 210 million

We can see from the question that the company has only recognized a tax expense of $80 million.

This means that the change in deferred tax asset was an increase of 210 million- 80 million = $130 million

8 0
3 years ago
Allison's requires $180,000 to fund a new project next year. The firm expects to earn excess cash of $68,000 this year after all
liraira [26]

$0 is needed

<u>Explanation:</u>

As per pecking order theory the risks and consequently cost increases in the order of own cash reserves, debt and then fresh equity . Since own cash reserves and debt could take care of funding requirement, so according to the pecking order theory as studied, the fresh equity needed is $0, which means there is no requirement.

Therefore, there should be no equity capital that should be raised in order to fund the project.

The correct answer is $0 equity.

4 0
3 years ago
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