Answer:
1 Cash $60000
Common Stock $4000
Additional Paid in Capital $56000
2 Cash $60000
Common Stock $60000
Explanation:
When stock issue at Market value the cash generated above the par value will consider as Additional Paid in Capital while cash common stock no par value it will consider as share issued at market value when share issued at no par value.
-I’ll make sure that the person is honest-I’ll do the background check-I’ll do the drug screening-I’ll make sure that the person has good math skills-I’ll make sure that the person has appropriate experience in handling cash
The correct answer for the question that is being presented above is this one: "TRUE." Although stocks can generate greater revenue, they are also more risky than many forms of investment. Dividends are not guaranteed; each company's board of directors has to vote to issue dividends, and they may not always do so.
The value of a firm will increase when the firm first uses leverage if we assume that there are no bankruptcy cost.
Companies that are unable to pay their debts may have very few options for the future. The legal process of releasing a business from debts and other obligations while providing creditors with a chance to be paid back may be one of those options. This process is known as bankruptcy. Bankruptcy can provide businesses with a fresh start even though it is a last resort.
When a business has significantly more debt than equity, bankruptcy frequently results. There are risks associated with debt, even though it may be a good way for a company to finance its operations.
The overall capital structure of a company may be weakened by bankruptcy expenses, which include legal costs.
Learn more about Bankruptcy, here
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