Answer:
a.
Cash 27000 Dr
Common Stock 13500 Cr
Paid in capital in excess of par-Common stock 13500 Cr
b.
Cash 135000 Dr
Preferred Stock 135000 Cr
Explanation:
a.
When we issue stock at premium, we always record the amount received from such issuance of stock at full. So, the cash account will be debited for 4500 * 6 = 27000
However, we record the common stock issued at par value and the remaining is credited under the reserve account which is Paid in capital in excess of par.
Thus the common stock will be credited by its par value of 4500 * 3 = 13500 and the remaining 4500 * 3 will be credited to the Paid in Capital account.
b.
The par value of the preferred stock is 4500 * 30 = 135000
Thus the preferred stock is issued at par and we simply debit the cash received from the issue and credit the preferred stock.
Answer:
B. Spending by firms on capital goods is declining.
Capacity ratio is a comparison of the number of working days in the budgeted period as well as the actual number of working days in the same period.
<h3>What is the c
apacity ratio?</h3>
Your information is incomplete. Therefore, an overview of the capacity ratio will be given.
Capacity ratio defines to show the capacity. The capacity utilization ratio simply measures whether the total direct labor hours worked in a production cost center in a period was either greater or less than what was budgeted.
It is calculated as:
= (Actual direct labor hours worked/budgeted direct labor hours) × 100%.
Learn more about capacity ratio on:
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Answer:
$11,760
Explanation:
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income/profit.
Without the new offer
Profit = 5000($29 - $15) - $20,900
= $70,000 - $20,900
= $49,100
For the new order a variable selling cost of $2 per unit would be eliminated, the contribution of the order will be
= 1680($20 - $15 + $2)
= 1680 * $7
= $11,760
This is the differential effect on profit.
Answer: (D) Product line
Explanation:
The product line is basically refers to the group of the product in which the similar company or organization selling their products and brands.
In the product line concept, the companies are basically expanding their business by selling their existing products according to the customer requirement and the usability. It is also known as marketing and the product strategy for increase their productivity.
Therefore, Option (D) is correct.
